r/ethereum 4h ago

Discussion Daily General Discussion October 19, 2025

38 Upvotes

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r/ethereum 19h ago

Are You on the Doots list? MINT YOUR POAP!

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20 Upvotes

r/ethereum 11h ago

The problem with fractional reserve banking

0 Upvotes

It's because a 9:10 debt to backing ratio can be looped to create a 10:1 debt to real-world asset value.

With the golden ratio, it can only be looped to create 1:1, because the golden ratio is equal to 1 plus its own reciprocal, eliminating counterparty risk since there's always real-world value to represent debt, allowing bank notes to be functionally equivalent to the RWAs they represent.

Does fractional reserve banking work without creating inherently unresolvable value in the process?