The Fiat asset token is the Keynesian inspired vehicle that is used for stimulus and system development.

The general idea behind the FAT is to raise funds externally and enable participation with non network participants in return for a trade / investment / yield or return (pending further mathematical, regulatory and legal research).

As the hard asset token is stimulating the supply side internally, the fiat asset token’s role is to stimulate demand externally.

The token has an uncapped dynamic supply where the inflation or deflation rate depends on whether the SCAO network needs to raise funds externally by issuing tokens, or reward non - network participants for prior funding rounds by taking tokens out of the supply.

The mechanism through which this is achieved will vary between SCAO to SCAO. Examples include a separate - external voting system controlling the token supply directly or through a SCAO Network owned and controlled permissionless exchange “liquid treasury” Smart Contract that purchases and exchanges fiat asset tokens.

While the Hard Asset Token acts as a sort of risk off bond and an internal stake in the system for network participants, the idea behind the fiat asset token’s role is more akin to a risk on stock market: The FAT is available to openly trade outside of the network by non - network participants, who are able to get investment or yield exposure from the network, while not participating with the network. The details of how that is achieved will vary from SCAO to SCAO ( i.e.: will there be a dividend ? Will the liquid asset token provide a certain degree of voting (governance) rights ? ).