1 YEM = 1 CHF — How a benchmark coin works

1. What distinguishes a benchmark coin from a stablecoin?

When most people hear “digital currency with stable value,” they automatically think of stablecoins—USDT, USDC, DAI. Coins that are pegged to the U.S. dollar and maintain their value through collateralized reserves (Treasuries, cash, bonds).

This model has a fundamental design flaw: Its value always depends on third parties . On banks that hold the reserves. On auditors who confirm that the reserves exist. On regulators who decide whether the business model remains legal. If one of these pillars collapses—as with Terra/Luna ($40 billion wiped out) or USDC during the SVB collapse ($0.87)— the entire coin collapses.

A benchmark coin works fundamentally differently. Its value is not backed by reserves, but is determined by governance decisions and algorithmic mechanisms . There is no treasury that anyone could freeze . No issuer that could go bankrupt. And no reserve that might turn out to be smaller than promised.

“A stablecoin is as stable as its reserves. A benchmark coin is as stable as its governance.”

2. The Concept: Benchmark vs. Stablecoin

To understand the difference, one must look at the architecture of both models—not the marketing promises.

Why the Swiss Franc?

YEM is pegged to the Swiss franc (CHF) — the most stable major currency in the world. Switzerland has no sovereign debt crisis, no aggressive monetary policy, and no geopolitical manipulation of its currency. The CHF has been the safe haven of the international financial world for decades.

This decision was not made by chance: in 2024 , the YEM community voted democratically to switch the reference currency from USD to CHF . The rationale: The U.S. dollar is increasingly losing trust as a neutral reserve currency due to rising national debt and aggressive SWIFT sanctions. The Swiss franc offers the political neutrality that a global digital currency requires.

The revaluation in August 2025

Since the revaluation in August 2025, the exchange rate has been: 1 YEM = 1 CHF. Previously, the exchange rate was 25,000 CHF per YEM — a valuation derived from the early token economy and adjusted back to a practical level with the revaluation. The total supply was adjusted accordingly so that no holder suffered a loss in value .

3. The 10 Core Principles of YEM

The YEM Foundation has defined ten core principles that form the foundation of the entire ecosystem. They are non-negotiable and constitute the constitution by which every governance decision is evaluated.

Value Preservation Through Benchmarking

The value of YEM is pegged to a stable reference currency (currently CHF) — not through reserves, but through algorithmic and governance-driven mechanisms. The goal is long-term purchasing power stability.

Independence from third parties

No bank account, no auditor, and no regulator can freeze, seize, or devalue the value of YEM. Independence from external institutions is a design principle, not a coincidence.

Democratic Governance

Every fundamental decision regarding YEM is made by the community — 1 YEM = 1 vote. The switch from USD to CHF was one such vote. The Board of Directors is democratically elected, not appointed.

Anti-Speculation

YEM is deliberately not traded on external exchanges No Binance, no Coinbase, no OTC desk. Trading takes place exclusively on the Digital Exchange Marketplace. This structurally prevents speculation.

Zero Transaction Fees

Transactions on the YEMChain cost 0%. No gas fees, no hidden costs, no slippage. This is what makes YEM practical for microtransactions and daily payments.

Limited Total Supply

YEM has a fixed maximum supply of 2.5 trillion YEM . There is no way to mint new tokens beyond this maximum — unlike fiat currencies, which can be endlessly inflated.

Community-Centric

YEM is not owned by any company. There are no venture capital investors, no profit maximization for shareholders. The Foundation is a non-profit corporation — profits flow back into the ecosystem, not to shareholders.

Global Accessibility

YEM is available to anyone with internet access — regardless of bank account, credit score, or country of residence. In a world where 1.4 billion adults do not have a bank account, this is not just an idealistic slogan, but an infrastructure decision.

Transparency and Traceability

All transactions are publicly verifiable on the YEMChain. Governance decisions are documented and available for the community to view. There is no “black box” as with Tether’s refusal to audit its reserves.

Sustainable Ecosystem

Staking rewards, community incentives, and a buyback program form a self-sustaining ecosystem. The goal is not short-term hype, but long-term utility—a digital currency that actually functions as a means of payment.

4. How is value determined?

The most common question is: If no reserves back the value—then what? The answer is a hybrid model combining algorithmic mechanisms and foundation governance.

The hybrid model

Since YEMChain V2, the system has operated with dynamic pricing . The price is not set once and then “hoped” to hold—but continuously calibrated, daily or even down to the minute.

No volatile exchange determines the price. While USDT on Binance can depeg due to arbitrage traders and panic sellers, YEM is not subject to this mechanism. There is no order book trading that could drag the price down.

No reliance on reserves. If a bank collapses tomorrow, nothing happens to YEM. There are no reserves held at a bank that could be frozen. The value base is algorithmic, not institutional.

Centralized liquidity control. The Foundation actively manages liquidity — like a central bank, but transparently and community-controlled. The BuyBack program buys YEM back out of circulation to prevent oversupply and stabilize the value.

Anti-speculation design. Every mechanism in the system is designed to make speculation unattractive. No leverage trading, no futures, no derivatives. Anyone holding YEM holds a means of payment—not an object of speculation.

“The price of YEM is not determined by traders, but by governance. That’s not a bug—it’s the feature.”

5. Maximum Supply and Tokenomics

YEM’s tokenomics are deliberately kept simple— no complex bonding curves, no opaque inflation mechanisms.

Maximum Supply

2.5 trillion

YEM (fixed, non-expandable)

Current Supply

~1.198 billion

YEM in circulation

Transaction fees

0%

on the YEMChain

Voting rights

1 YEM = 1 vote

Democratic governance

Distribution

Token distribution occurs through three main channels:

• ◆ Staking: Long-term holders are rewarded with additional YEM — an incentive that promotes stability rather than short-term trading.
• ◆ Rewards: Active participation in the ecosystem (transactions, governance participation, community work) is incentivized.
• ◆ Community Incentives: Programs for outreach and adoption — funded by the ecosystem, not through token inflation.

What matters is what doesn’t happen: There are no VC unlocks, no insider sales, no team token cliffs that suddenly flood the market with new tokens. The tokenomics are designed to produce stability — not exit liquidity for early investors.

6. Why YEM is deliberately not traded on exchanges

The absence of Binance, Coinbase, and the like is the point where most crypto veterans become skeptical. “If it’s not on exchanges, it’s not liquid.” “No exchange listing, no real value.”

This logic does not hold up to scrutiny — at least not if the goal is a means of payment and not an object of speculation.

The exchange dilemma:

• ✗ Any exchange-traded currency becomes an object of speculation. As soon as traders can use leverage, the price becomes volatile — regardless of fundamental value.
• ✗ Speculation destroys the function of a means of payment. No one pays for their coffee with a token that could be worth 30% more or less tomorrow. Bitcoin has failed to solve this problem for 15 years.
• ✗ Exchanges control access. A delisting on Binance — as happens to dozens of projects every year — can destroy a token’s price overnight. This dependency contradicts the principle of independence.

YEM trades exclusively on the Digital Exchange Marketplace (digitalexchange.center). This is not a restriction—it is a deliberate design choice . A controlled marketplace where supply and demand can meet without high-frequency traders and leveraged shorts manipulating the price .

“A medium of exchange that is speculated upon on exchanges is no longer a medium of exchange—it is a betting slip.”

7. The YEM Foundation

Behind YEM stands not an anonymous group of developers and not a for-profit company, but a non-profit corporation with a clear legal form and democratic structure.

The non-profit structure means: The Foundation does not exist to maximize profits for shareholders. There are no dividends, no bonus payouts, and no stock options for management. All value generated flows back into the ecosystem.

The Board of International Directors consists of 5 people elected by the community. No self-appointment, no backroom deals. The planned European presence in Liechtenstein — one of the few countries with a comprehensive blockchain law (TVTG) — underscores our commitment to regulatory integrity.

The difference from Tether, Circle & Co.

In 2024, Tether generated over $13 billion in profit — more than most banks. This profit comes from interest on reserves that actually belong to the token holders. YEM does not have this business model because there are no reserves and the Foundation cannot distribute profits.

8. Conclusion: The problem that stablecoins merely postpone

Stablecoins solve a real problem: The volatility of cryptocurrencies makes them unusable as a means of payment. But the solution offered by stablecoins is to bring back precisely the institutions from which crypto actually sought to free itself — banks, regulators, centralized issuers.

That is not progress. It is a vicious cycle.

A benchmark coin like YEM attempts to break this cycle. Not through even more reserves, even stricter audits, or even better insurance— but through a fundamentally different design :

Value through governance instead of reserves

CHF as a neutral reference instead of USD as a geopolitical instrument

A controlled marketplace instead of speculative exchanges

Non-profit foundation instead of a profit-driven issuer

0% transaction fees instead of gas fee madness

Whether this model works in the long term remains to be seen. YEMChain V2 must deliver on its promises in practice, governance must scale, and the community must grow. But the approach addresses the right problems—problems that stablecoins do not solve, but merely postpone.

“Stablecoins have solved the volatility problem by bringing back the trust problem. A benchmark coin attempts to solve both at the same time.”

Sources & Further Information

• [1] YEM Foundation — yem.foundation
• [2] YEM Whitepaper (German) — The 10 Core Principles and the Benchmark Model
• [3] YEMChain V2 Roadmap — Dynamic Pricing and Algorithmic Mechanisms
• [4] Digital Exchange Marketplace — digitalexchange.center
• [5] Nevada Secretary of State — Entity #E0553072017-8 (YEM Foundation Inc.)
• [6] Liechtenstein TVTG (Token and VT Service Provider Act) — Blockchain Regulatory Framework

Note: This article is for informational purposes only and does not constitute investment advice. The information presented is based on publicly available sources from the YEM Foundation and the YEM whitepaper. Any investment decision should be based on your own research.