Joshua Mutisya
Digi Pesa - A Price Stable Cryptocurrency to end Inflation! Crowdinvesting Crowdinvesting
1,500.00 Soft Cap, ETH
7,500.00 Hard Cap, ETH
12 Apr, 2019 - 04 Aug, 2019 Campaign Duration (UTC)

A Price Stable non-collateralized Cryptocurrency seeking to end Inflation in Developing Economies.


Digi Pesa means Digital Money. Pesa is a Swahili word for money. Digi Pesa is a decentralized non-collateralized price table Cryptocurrency that will be built on Ethereum blockchain and seeks to end inflation in Developing Economies, provide stock market traders with a less volatile trading pair and a trusted medium of exchange for global markets.

The Digi Pesa Smart Contract will regulate the price of Digi Pesa tokens by expending and contracting the supply of Digi Pesa tokens just like the way central banks regulate inflation and deflation.

The Difference in Digi Pesa
  • The smart contract is less complex as compared to other stable coin Cryptocurrency projects.

  • It is non-collateralized, meaning there is no equivalent of a fiat that is deposited in order to produce a Digi Pesa Token therefore completely decentralized.

  • The Digi Pesa architecture does not compromise anonymity and security because it is built on the blockchain.

  • Its price stability gives it trust among governments and global markets because it is not subject to manipulation and control by central bodies and cartels.

  • The smart contract will be audited regularly by reputable blockchain auditing firms to ensure that is no compromise to its stipulated function.

  • The name resonates with the masses in developing economies and stands a higher chance than other stable coin projects.

Why Digi Pesa?

Citizens in developing economies have suffered immense loses when government controlled fiat currencies lose value. Savings become valueless and currencies lose purchasing power. A case in point is the hyperinflation in Zimbabwe in 2009.Citizens were forced to import other currencies illegally so as to store it for savings.

Digi Pesa comes handy to solve such a mess because it does not need to be imported across borders. Citizens can use it as savings or to buy goods and services across borders without breaking any law.



- The need for Stable Coins

To address price stability resulting to wide acceptance of crypto, stable coins are needed. Traders need to have confidence in buying and selling of cryptocurrencies for profits because they know the currencies will adhere to market dynamics of supply and demand that determines the prices. This is not common to crypto.

In crypto, price can be going up when volume is going down! Ridiculous! To achieve stability, regulation is required, however not regulation by physical bodies such as the central bank. Physical regulation would kill decentralization, privacy and security.

Past and current stable coin projects such as Tether, Basis, Carbon, MakerDao and DigixDao have compromised decentralization privacy and security. Tether and Basis are pegged to the USD while MakerDao is pegged to DigixDao which is pegged to gold. The thought of pegging a cryptocurrency to a centralized item is the first compromise to decentralization. The dollar was initially pegged to gold but the peg was completely removed in 1971 which means we can achieve currencies without pegs.

- What is a Stable Coin?

A stable coin is a global currency that has its price stable over a long period of time. A perfect stable coin has a price stability of over 20 years.

A perfect stable coin should explicit three basic qualities; - a medium of exchange, a store of value and a unit of account. For any currency to be involved in buying and selling of goods and services, stability is important. The event of a buyer or seller losing value due to price volatility should not happen.

For cryptocurrencies volatility is the main hindrance to mainstream adoption.

- How to achieve a Stable Coin

While it is impossible to achieve a perfect stable coin, stable coins need to adhere to the basic original idea of cryptocurrencies. With time we will end up with a perfect stable coin that will dislodge dominant fiat currencies such as the USD.

The blockchain is a network of unregulated decentralized systems. The lack of regulation is the result of volatility in prices and delayed adoption. It is clear that the future of blockchain and financial systems is the convergence of decentralization and regulation. Regulation however should not introduce centralization which is basic with fiat currencies and would kill the idea behind cryptocurrencies.

Regulation should not be done by central bodies but by smart contract blockchain software protocol solutions that automatically perform regulation functions such as minting more tokens, assigning tokens to users and eventually regulating the prices if market dynamics change.

There are three types of Stable coins; -

i) Fiat Collateralized

These kinds of stable coins are pegged to physical items like oil, gold or the USD.In order to acquire a coin, a certain amount of a physical item is deposited as collateral to a ratio of 1:1. For Example, every Tether minted, there is an equivalent of $1 in the bank. The protocol regulating the price of the coins ensures that the price does fluctuate a little from the price of the peg. This is a simple and robust approach but indeed introduces centralization. Examples of stable coins are Tether, Basis, and DigixDao.

  • Robust

  • Simple

  • Price Stable

  • Trusted

  • Introduces centralization

  • Compromises privacy

  • Highly questionable protocol

  • Regulated

  • Expensive

ii)Crypto Collateralized

They work in the same manner as the fiat collateralized coins but instead are pegged to other cryptocurrencies. A perfect example is MakerDao pegged to DigixDao that is subsequently pegged to gold. The idea is to overprice the coin so that in case there is huge price fluctuations of the peg, the coin price will remain in desired range.

  • Simple

  • Relies on already tested technology

  • More transparent

  • Liquidates to underlying peg easily


  • If the underlying peg collapses, the coin collapses too.

  • Complex

  • Less price stability as compared to fiat collateralized model

  • Auto liquidation in case of collapse of underlying peg


Non-collateralized stable coins are not pegged on anything apart from the expectation that their prices will remain stable. There are a couple of technologies behind this approach, but the most common is the Seigniorage shares approach.

A smart contract software protocol that behaves like a central bank is responsible for contracting and expanding the supply of the coins when market dynamics change.

The technology is simple – the smart contract is the one issuing the coins, therefore it is responsible for determining coin supply and in turn regulating the price.

Let’s assume the price of the coin ought to be $10 but its trading at $8 which means that the price is too low and the supply is high.

The smart contract will buy of coins from the market so that the supply decreases and price eventually stabilizes. What if the smart contract does not have enough Seigniorage to buy off coins, its issues shares in exchange for coins that holders can exchange for coins in future when the smart contract mints more coins for profits.

When the price of the coins in above normal, the reverse happens. For example, the price is at $14.That means there is less supply and demand is high. The smart contract will therefore mint more coins and auction them to the public. Eventually there will be more supply, less demand and the price will stabilize back to normal.

  • Its independent of any other peg. The collapse of the dollar or other currencies will never affect it.

  • Decentralized. Does not rely on any fiat or other cryptocurrencies.

  • It’s the best if it acquires price stability over a long time.

  • Requires animated growth.

  • In case of a complete collapse, it cannot be liquidated.


Digi Pesa Smart Contract

Digi Pesa will be a Non-collateralized Ethereum smart contract stable token that is regulated by the Digi Pesa software protocol system known as the Digi Pesa Smart Contract. The Digi Pesa smart contract uses the Seigniorage shares approach that complies to economic principles with modifications to address the common loop holes that can flop its adoption. This approach is built on a decentralized smart contract that algorithmically expands and contracts the supply of stable coins much like the way central bank regulates fiat currencies. The price of Digi Pesa Tokens will be relative to the US Dollar in a 1:1 basis.

The Quantity Theory of Money and the Seigniorage Shares Model

The Quantity Theory of Money

The Quantity theory of money states that the long-term average price of goods and services is dependent on the amount of money in circulation.

Central banks across the globe use the quantity theory of money to regulate the supply of money and the prices of goods and services. Take for example when the economy is doing well, people have more money, instinct dictates that they will spend money to buy more goods. The demand for goods forces the prices to sky rocket, prompting employers to increase wages, eventually there is more money and the scenario finally runs out of control. Such is termed as inflation. When people have less money, they buy less goods, the price of goods go down due to less demand, the result is production of goods goes down, less jobs and wages cuts, and the whole system may eventually collapse. This is deflation.

Central Banks’ Contraction and Expansion mechanism

To ensure that the two scenarios don’t collapse the economy, central banks introduces regulation to the supply of money. When there is more money in supply, the central bank introduces a mechanism to retain the money. It decreases bond prices and increases interest rates. This reduces spending because people who have money tend to save it instead of spending. There is also less credit as a result and this reduces spending. Central banks also increase the reserve requirements. The Reserve requirement is the money banks are required to keep to cover withdrawals. The more money banks are required to hold back, the less they have to spend. That means customers have less to borrow and less to spend.

Another method is to directly or indirectly reduce the money supply by increasing the interest paid on bonds so that investors can buy them. This increases the exchange rate of the currency. Central banks can also call in debts owed to the government.

When people have less money and are unwilling to spend, the central bank buys securities and decreases interest rates so that more money is made available to the public because borrower capability is increased. The public then starts to buy goods and the prices will get back to normal. For the above two scenarios, the Consumer Price Index (CPI) is the main trigger therefore the central bank must keep track of the price indices of goods and services.

The Seigniorage Shares Model

The Seigniorage shares formulation was proposed by Robert Sams in 2014 as an ideal model for developing stable coins but it was never developed further than that. However, it has been a good inspiration for most stable coin projects such as Carbon and Basis. The Seigniorage shares model works similar to the central bank. It keeps track of the coin price index and deploys a similar mechanism to contract and expand the supply so that market dynamics adhere to the principle of supply and demand. Its mandate is to mint coins that will trade at a relatively fixed price. If the price of coins begins to go up, the system mints more coins and auctions it on the market so that demand decreases and the price goes down again. The cost of production of a coin is less than the auction price so the systems makes profit known as Seigniorage which it can use to buy off coins if the price begins to go down. In case the price starts to go down, the smart contract software protocol buys off tokens using the saved Seigniorage. When the saved Seigniorage is insufficient to buy off the tokens, the smart contract issues shares that will entitle holders to future profits in exchange for coins. The next time the system issues coins and earns Seigniorage, holders will be entitled to a share of the profits.

The Seigniorage Shares Model Shortcomings
  • Seigniorage shares can only absorb a downward pressure for some time. When selling pressure increases traders will lose confidence on the value of shares which will in turn cause an accelerated price drop and the system will eventually crash.
  • The system is difficult to analyze and give trusted outcomes. What if the downward pressure goes on for a long time? Will traders buy more tokens? Will more traders be incentivized to buy huge volumes of tokens in hope that the price will go up again so they sell at a profit?
  • The system needs a high level of bootstrapping for liquidity early on until a balance point is achieved.

The Digi Pesa Smart Contract Expansion and Contraction

The work of central banks is to implement mechanisms such as the open market operations, that regulate the supply of money during inflation and deflation. When price levels go high, the central bank takes back money (Contraction) so that people spend normally and prices eventually go down back to normal. When prices go low, the central bank supplies more money (Expansion) so that people have more money to spend and prices go up to normal.>

Existing cryptocurrencies have a fixed supply and do not have mechanisms to adjust price lows and highs. The price of Bitcoin for example determined by supply and demand. If more people are buying than those selling that means demand is high and price proportionally goes up. If more people are selling than those buying that means demand is less and price goes down.

Requirements for Digi Pesa Smart Contract Expansion and Contraction
  • Digi Pesa Tokens
These are the core output of the system like the currency supplied by a central bank.
  • Digi Pesa Bonus Tokens
Digi Pesa Bonus Tokens are created at the initiation of Digi Pesa Tokens and when the price of Digi Pesa Tokens is below the peg or CPI and awarded to buyers or sellers of Digi Pesa Tokens as an incentive to buy the Tokens during expansion and sell them off during contraction. For every Digi Pesa Token bought, Digi Pesa Bonus Token is awarded. The price of one Digi Pesa Bonus Token is 20% the price of a Digi Pesa Token.
  • A Trusted USD Feed
A Decentralized Schelling mechanism which operates like a Schelling coin will be used to determine the exchange rate.
  • A trusted Consumer Price Index (CPI) feed published on the blockchain
For future growth a CPI will be introduced so that the price of the Tokens can measure against it.
The CPI will be a weighted average of sub-indices of the price of basic goods and services from target economies computed quarterly.
Digi Pesa Smart Contract Expansion

Expansion will happen when the price of Digi Pesa Tokens moves below the exchange rate of the peg or CPI. The smart contract responds by:


  • Minting more Digi Pesa Tokens and auctioning them on the market.
  • Automatically buying off all Digi Pesa Bonus tokens which were awarded to Token buyers at the initiation of Digi Pesa Tokens or Bonus Tokens awarded to buyers who bought Digi Pesa Tokens during a previous expansion or contraction mechanism in exchange for Digi Pesa Tokens. Bonus Tokens bought first are given priority.
Digi Pesa Smart Contract Contraction

Contraction takes place when the price of Digi Pesa Tokens moves above the exchange rate of the peg or the price of an established CPI and there is urgent need to move it back to normal.

The smart contract responds by:


  • Buying off Digi Pesa Tokens at the current market price.
  • Awarding Bonus Tokens to Digi Pesa Token sellers which they can exchange for Tokens during expansion mechanism.

i) A Relatively Price Stable Crypto Trading Pair for Traders

Cryptocurrencies such as Bitcoin which is the most common trading pair to other cryptocurrencies on exchanges are very volatile and there is no established way to estimate its price behaviors. If the price of Bitcoin goes down, the price of the paired cryptocurrency also goes down.

Traders buy a crypto pair when price goes down hoping some trigger will cause it to price pump so that they can sell off at a profit. Sometimes traders are caught in bull traps or coordinated dumps that leave them with huge loses.

Most times the price remains low for months moving sideways and offering no reasonable margins for traders to sell off and make profits.

As long as the volatility of cryptocurrencies remain, traders will have to wade the murky road of trial and error.

A price stable cryptocurrency trading pair is the solution to the woes of traders caused by crypto volatility. A stable cryptocurrency is the ideal trading pair to other cryptocurrencies because its price pattern can be established. Traders know when the price goes down, it is good time to buy coins since the price will eventually go up because the stable coin price trigger mechanisms will come into play and push the price back up consequently pushing the price of the trading pair up. When the price stabilizes, they can then sell off the coins for a profit.

Over a period of time, traders can make a fortune of profit as the price of the coin is regulated by the mechanism that keeps initiating triggers to push the price up and down as market conditions change.

The price stability of the Digi Pesa Token will be an incentive for exchanges to adopt it as a reliable trading pair to other cryptocurrencies. Traders will then find it a reliable trading pair as compared to pairs such as the Bitcoin pair.
ii) A Form of Currency in Developing Economies

Economies in developing countries suffer immense inflation and devaluation of currencies. Remember the Zimbabwe hyperinflation in 2008 when the rate of inflation hit 79,600,000,000%. The Zimbabwe dollar (ZWD) which was officially more valued than the USD in 1980 when it was introduced trading at 1 ZWD = 1.47 USD became the least valued currency in the world.

Zimbabwe citizens who had savings lost when the ZWD was devalued. Citizens started illegally importing other currencies such as the South African Rand and USD across the borders in a quest for a price stable currency. The use of foreign currencies was legalized in 2009 causing consumer prices to stabilize after years of hyperinflation and speculation. The move rendered the highest denomination note of the Zimbabwe dollar worthless followed by a huge drop to the use of the currency.

In 2014 the ZWD was eventually abandoned and other more stable currencies such as the South African Rand, the Botswana Pula, Pound, Sterling, the USD, Euro, Australian Dollar, Japanese Yen, Indian Rupee and the Chinese Yuan were adopted as official currencies.

The main challenge became the process of cross border importation of the adopted currencies.

In countries where hyperinflation is common, a stable cryptocurrency can adequately be used as a replacement of the local currency since cryptocurrencies are not limited by borders and do not need importation. Governments will need to support the blockchain and find ideal stable cryptocurrencies that address the needs of its citizenry. In countries where the government opposes blockchain, citizens who know the importance of stable cryptocurrencies may adopt stable coins more than the local currencies and force their governments to have no choice but jump into the stable cryptocurrency bandwagon.

Digi Pesa comes handy when global economics demonetize their local currencies.

iii) A Trusted Price Reliable Market Cryptocurrency

Although Cryptocurrencies such as Bitcoin have been used to buy goods and services, merchants don’t trust the high price volatility. Merchants who accept Bitcoin as payment immediately convert it to USD so that just in case the price equivalent of Bitcoin goes down, they don’t lose value of their goods and services.

Fiat currencies such as the dollar have been widely accepted because of its stability. The exchange rate of the dollar changes once in a while, but the margins are negligible. Any amount of loss incurred through a change in the exchange rate of the dollar is within manageable limits.

Financial contracts such as insurances, loans and mortgages depend on price stability. Every financial contract involves risk and risk would be escalated if the price of the currency on which it’s based drops drastically. At any given time, market liquidity is key. Asset prices should remain stable over a long period. Unstable currencies would cause asset devaluation.

Take for example a piece of land selling for 3 Bitcoin which is equivalent to $19,000 at the moment. A day later the price of Bitcoin drops to $5,800. The same piece of land would be valued at $18,400 a few hours later when the expectation is that the price of land should appreciate over time.

Price volatile currencies require a Schelling service that is able to predict the price of the currency and provide a hedge to companies and businesses involved in contracts such as salaries, loans, mortgages and stock markets.

Price stable cryptocurrencies would be an ideal solution to the above type of uncertainties and risks. As people, business and companies realize the importance of cryptocurrencies, the need for a price stable cryptocurrency would be paramount. Digi Pesa comes in hand to solve the market price volatility conflict arising from cryptocurrencies such as Bitcoin.

The Digi Pesa Team

Eng. Joshua Kiio

Founder & CEO

He holders a Bachelor of Science in Computer Engineering degree from Kenyatta University and currently pursuing a Master of Business Degree in Entrepreneurship and Innovation from the University of Nairobi. He has 11 years’ experience in computer programming and related project management.

He has worked for Cito Communications Ltd as Director of strategic innovation of solar powered electronic equipment. Joshua has been in the Cryptocurrency world since its discovery in 2009 and has participated in 3 Cryptocurrency Projects as an advisor, is a member of Kenya Blockchain association that holds frequent blockchain forums aimed at exploring the opportunities in blockchain.

He has a vast knowledge in Cryptocurrencies and the evolution of the blockchain. Through the White Papers, He has studied numerous Cryptocurrency architectures such as Basis, Carbon, Maker, DigixDao, Tether, Bitcoin and Ethereum. He frequently hosts blockchain talks to educate the masses and enthusiasts about the blockchain and Cryptocurrencies


Joseph Munyao

Head of Finance

He holds a Bachelor of Commerce, Master of Finance and currently doing a PhD in finance in Kenyatta University. He has a wealth of experience in finance systems and economics both from corporate practice and lecturing at the university.

He has been involved in Financial Institutions such as the Nairobi Stock Exchange (NSE) as a Research Expert and Consultant.


Malinzi Kwesiga


Malinzi holds a bachelor of law degree from Makerere University and has a Masters in Law from the University of Nairobi.He has 1 years experience in arbitration and oaths.He is the CEO & Founder of NDUNGUSTE MALINZI ASSOCIATES & Co. ADVOCATES & JURIS CONSULT INTERNATIONAL and a legal at KWENGU & CO. ADVOCATES.


Esther Kamande

Head of Communication & PR

Esther holds a Bachelors of Arts in communication and media studies from Egerton University. She has 7 years’ experience in Media, Communication and Public Relations acquired from working in Reputable Institutions such as The United Nations Customer Service in Nairobi as a Public Information Assistant, Egerton Radio and KEW Communications.


NB:The team is growing as the project advances through different stages.



Location:New Rehema House,Raphta Road Westlands,

Nairobi, Kenya.

Website :

Email : [email protected]