Diamond Standard Act

Diamond Standard Act

Osolian law passed by Assembly
Osolian Assembly
Introduced by	Speaker tz_scion
Dates
Presented to the Assembly	24 December 2023
Commencement	25 December 2023
Other legislation
Amended by	DC Regulation Act
Status: Amended
History of passage through the Assembly
Text of statute as originally enacted

The Diamond Standard Act is a law in Osolia, passed by the Osolian Assembly with 100% approval. It was the first bill to be passed by the Assembly. The act ties the Diamond Cent (DC) to an unchanging 1:128 exchange rate with diamonds. This act would later be amended by the DC Regulation Act, which allows the Chiefdom of Osolia to place limitations on the minting of new DC.

Background

The Diamond Cent exchange program was launched by the Department of Finance shortly after the opening of the server, yet there existed no legal framework for tying the Diamond Cent to the diamond.

Speaker tz_scion opted to write a bill addressing the issue, introducing Bill 1 - Diamond Standard Act to the Assembly. This first version of the bill set the exchange rate to be a changing one, where any discrepancy would become the new rate.

After the case was made for keeping a locked exchange rate, the Speaker introduced another version of the bill, Bill 2 - Diamond Standard Act, which mandated the government keep the exchange rate stable at 128 DC per diamond, and placed a responsibility on the executive to resolve any discrepancies.

Provisions

Definition of the Diamond Cent

The Diamond Cent was defined as the currency accessible via the Osolia ATM Discord bot. This was the first time the DC was mentioned in law.

Responsibilities of the government

The government was required to provide the exchange service in both directions, diamonds to DC and vice versa. The exchange rate was locked at 128 DC per diamond.

Additionally, the legislation requires the government ensure any DC that are minted be backed by diamonds and those diamonds are secured from theft or becoming lost. Lastly, it was made the government's responsibility to acquire the diamonds needed to return to the set exchange rate if there was ever a discrepancy.