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The Responsive Dollar

The Responsive Dollar

1 RAM is equal to 1 USD based on a 2020 USDs purchasing power. We accomplish this by looking at what 1 USD can purchase today in terms of major commodities across the globe and averaging them all together weighted by volume.

Lets take a look at corn which is denominated in bushels.

1Bushel=115.21USD

1RAM=1/115.21=0.008679Bushels(pC1)

This is then averaged against other commodities weighted by its global trade volume. So lets add another commodity gold which is denominated in troy ounces and goes for $1,951.50/troy ounce.

1RAM=1/1951.50=0.000512426toz(pG1)

Now if the price of corn went up 2% and the price of gold went up 5% the new RAM value would be an average of the two weighted by their daily volume.

Corn's new price would be

1/117.5142 = 0.008509(pC2) with a daily volume of 439,357(vC) @ 117.5142/bushel (pC2)

If we stopped here 1 RAM would now equal 1.02 USD because (0.008679/0.008509 = 1.02) We aren't basing this on a single commodity however.

Golds new price would be

1/2049.075 = 0.00049 (pG2) with a daily volume of 234,363 (vG) @ 2049.075/t oz (pG2)

((pC1/pC2)∗(vC∗pC2)+(pG1/pG2)∗(vG∗pG2))/((vC∗pC2)+(vG∗pG2))

This equation gives us RAMs new USD value being 1.0471

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