Algorithmic Float

A closer look at how DUCA's value is determined

What is Algorithmic Float?

DUCA's value is determined with a novel "Algorithmic Float", representing a new paradigm in currency exchange rate regimes. It operates as an unmanaged and floating exchange rate that is not tied to any specific currency or a pre-determined basket of currencies. Instead, it is designed to minimize volatility and preserve the purchasing power of DUCA by dynamically adapting its value based on the foreign exchange (FOREX) data of the most traded currencies in the world.

How does Algorithmic Float work?

Algorithmic Float recalibrates monthly in response to updated FOREX data, ensuring a responsive and dynamic valuation system for DUCA. The resulting exchange value of DUCA is expressed as a growth percentage relative to the Special Drawing Rights (SDR) currency of the International Monetary Fund (IMF), which is selected due to its low volatility compared to other currencies.

This design helps maintain DUCA's value independently of traditional financial systems and their inherent instabilities.