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[](https://3speak.tv/watch?v=networkstate.mp3/szvbrwbt) ▶️ Watch on 3Speak Securing Digital Rights for Communities (Game Theory and Governance of Scalable Blockchains for Use in Digital Network States) Chapter 17. Algorithmic Stablecoins on Layer 1 17.1 Why We Need a Truly Decentralised Stablecoin Many blockchains rely on centralised stablecoins (like Tether or USDC) that hold reserves in fiat accounts. These assets can be seized, frozen, or regulated at any time. A censorship-resistant blockchain must have an algorithmic stablecoin backed only by digital value that no single entity can control or confiscate. 17.2 Backing the Stablecoin with Digital Real Estate (Social Tokens and Bandwidth in the Ecosystem) A stablecoin has to be backed or collateralised by something. In a censorship-resistant system, backing cannot be gold, dollars in a bank, or any physical good vulnerable to seizure. Instead, it should be backed by a layer-1 governance token that represents valuable digital real est