Truflation is a blockchain-based financial data service that offers real-time economic and inflation data. Launched in December 2021, it provides daily inflation updates from more than 30 sources and updates its methodology annually. Indexes are updated daily to provide consumers with real-time information regarding the price fluctuations they are experiencing and their impact on their finances.

Truflation provides real-time inflation calculations that are independent and resistant to censorship. It utilizes census-level price information from over 30 data sources, each providing census-level data. Truflation also provides an exhaustive, granular perspective on actual changes in consumer behavior by measuring the price changes of over 10 million products every week.

What is Truflation?

Truflation is a financial data service that utilizes blockchain technology to provide real-time economic and inflation data. Compared to conventional methodologies such as the Consumer Price Index (CPI), this platform has been developed to offer more precise and transparent inflation data.

In December 2021, Truflation was established as an independent data service to provide real-time inflation calculations. Truflation is a private service, unlike conventional methods such as the Consumer Price Index (CPI) that government agencies calculate. Modern consumer expenditure data sets and advanced technology generate inflation readings. This enables Truflation to revise its data more frequently and capture a more nuanced inflation picture.

Background

Tru Labs is responsible for the development of Truflation, led by its founder and CEO, Stefan Rust. Rust, a prolific entrepreneur, obtained a degree from Northwestern’s Kellogg School of Management before starting a lengthy career in technology. He is the former CEO of bitcoin.com and currently holds leadership positions in numerous associated initiatives, such as Laguna Labs, its “Flatcoin” product Nuon, and the staking solution Trusted Node, in addition to his role at Tru Labs.

Coinbase CTO Balaji Srinivasan challenged the crypto community in May 2021 to construct an inflation feed that is “censorship-resistant.” A $200,000 reward was awarded to the Truflation team for winning the challenge. In subsequent years, it received backing from various venture capital and crypto-based sources, such as Chainlink and Cogitent Ventures. The initiative secured $6 million in a Series A funding round in early 2024.

Initially, Truflation exclusively utilized the Ethereum mainnet; however, in May 2022, it implemented smart contracts and nodes on Avalanche, Polygon, and BNB Chain through Chainlink’s interoperable network. A few months later, it announced it would publish a UK inflation index and its US index as part of its ongoing expansion efforts.

Truflation Technology and Core Features

Truflation’s daily inflation updates are one of its most significant value propositions. In comparison to the monthly updates of the CPI, Truflation’s dataset is updated daily from various sources across all inflation categories, providing a more dynamic perspective on inflation. This real-time data provision reduces market uncertainty by frequently updating consumer price changes.

Comprehensive Data Collection

Truflation accumulates data from more than 30 distinct sources, representing millions of product price data points. This contrasts with the conventional CPI metric, which employs data from approximately 80,000 products. Truflation’s comprehensive data compilation aims to offer a more precise depiction of the market.

Consumer Price Categorization

The consumer prices in Truflation’s calculation are categorized into twelve groups, each assigned a relative expenditure weight. These categories encompass a comprehensive overview of various inflation sectors, such as accommodation, utilities, transportation, and food and beverages.

Data Providers

Truflation’s data sources include NielsenIQ, Big Mac Index, Amazon, Walmart, Zillow, and others. This extensive network facilitates rapidly accumulating vast pricing information from independent sources.

Partners and Investors

Since its inception, Truflation has been supported by the most esteemed partners and investors. World-class network architects and software engineers are responsible for Truflation’s development and management, which is overseen by a professional executive team with experience at some of the world’s most prominent companies.

How Does Truflation Work?

Truflation is an initiative that utilizes blockchain technology and a DePIN network (known as the Truflation Stream Network, or TSN) to compile precise, real-world economic data. While the Consumer Price Index (CPI) primarily depends on periodic surveys and visits to a limited number of stores to verify the prices of specific products, Truflation endeavors to utilize real-time, up-to-date information electronically transmitted across a vast network of data providers. This primarily intends to enhance the representation of actual (or “true”) inflation through price data. The economic data that Truflation accumulates can be utilized in various applications, including developing synthetic assets (such as stablecoins), lending protocols, and prediction markets.

Truflation’s fundamental objective is to establish a dependable source of economic data for decentralized finance (DeFi) products and third-party clients through crowdsourcing. It achieves this using its Truflation Stream Network (TSN). Truflation utilizes Chainlink’s oracle network to transmit economic data collected off-chain to blockchain networks such as Ethereum, Avalanche, etc.

The initial objective of Truflation was to develop a more precise and current measure of inflation compared to existing measures such as the Consumer Price Index (CPI). The methodology for calculating US inflation using its data providers was detailed in a 20-page explanation that was published. Although a significant portion of the method aligns with the CPI, the weights of the various components are inconsistent, and over half of the calculation is attributed to alternative sources.

Truflation’s Main Features

RWA Indexes

The Trufluation Real World Assets (RWAs) are tangible or physical valuables in the real world. The tokenization of RWAs entails the digital representation of these assets on a blockchain, which enables more efficient administration and trading, increased liquidity, and fractional ownership.

RWA indexes aim to improve liquidity in digital markets and close the divide between TradFi assets and DeFi technology, facilitating a more inclusive and adaptable financial environment. Truflation’s RWA Index offers a standardized framework for transparent asset valuation in the decentralized ecosystem.

AI Predictions

Truflation has created a prediction model for significant macroeconomic indicators in the United States. This innovative instrument provides investors and analysts with actionable insights, thereby facilitating the development of more informed strategies and decisions.

AI is used to reliably forecast macroeconomic indicators through Truflation AI prediction. The inaccuracies and delays of traditional methods used to forecast financial market trends frequently impede decision-making processes.

The quality and volume of data that AI-driven prediction models analyze are critical to their efficacy. Truflation guarantees the precision and dependability of its forecasts by providing a solid foundation of comprehensive, immaculate data.

DePIN Network

The Decentralized Physical Infrastructure Network (DePIN) is a paradigm shift in conceptualizing and managing real-world infrastructure. In 2023, the proliferation of Decentralized Physical Infrastructure Networks (DePIN) skyrocketed. According to Messari’s “The DePIN Sector Map” report, approximately 650 initiatives were initiated to develop these innovative solutions last year.

The Truflation Stream Network (TSN) is the decentralized physical infrastructure (DePIN) that underpins the platform’s extensive data repository. The network guarantees the accuracy, tamper-proofness, and trustworthiness of the data transmitted to blockchain applications.

Truflation Stream Network (TSN)

The Truflation Stream Network (TSN) is a permissionless network that utilizes Truflation’s extensive real-time data streams to facilitate tokenizing Real-World Assets (RWA). TSN is a Byzantine Fault-tolerant (BFT) network that is self-contained and intended to simplify the creation of innovative web3 applications that are data-driven. Our network of node administrators, as well as individual consumers and asset managers, ensures the availability of data.

The Truflation Stream Network (TSN) is the foundation of our data infrastructure, a globally distributed network that provides financial applications with low-latency data and extreme fault tolerance. It is a collaborative ecosystem comprising data providers, node administrators, and data scientists who collaborate to aggregate, validate, and compute incoming data. This network guarantees the integrity and reliability of our data and its continuous, real-time update, ensuring that it remains in sync with the rapidly evolving global economy.

The Truflation Stream Network (TSN) is a blockchain custom-made for its application and called an “app chain.” It utilizes Byzantine Fault Tolerance, a mechanism that involves a network of nodes to achieve consensus. This safeguards the network from malevolent actors attempting to submit falsified transactions or engage in other self-serving activities. It is composed of four primary elements.

Adapters

Adapters are programs that operate on-chain, similar to smart contracts, and assist in processing incoming data from data providers to ensure that it is stored and aggregated adequately on the network. The Events Context is the name of the event record that adaptors publish.

Events Context

The Events Context is a compilation of data stored on the TSN. By storing events (data) chronologically, a reproducible framework is established.

Data Streams

Data streams are the primary form of TSN’s data output, enabling consumers to access the most recent information stored and verified by the network’s nodes. For instance, inflation and pricing data for digital assets in the United States are examples.

Indexes

Indexes are examples of aggregated data that the TSN can make available to consumers after completing internal processing and calculations. For instance, in early 2024, Truflation declared that it would publish its own Big Mac Index, incorporating data from 2010.

Creating new decentralized exchanges (DEXs) and decentralized applications (dApps) is one of the many applications of TSN’s real-time data streams. Therefore, who are the primary stakeholders in the TSN ecosystem?

TSN Users

TSN’s data can fuel any synthetic index or asset, and it can be incorporated into decentralized finance (DeFi) protocols, DEXs, and dApps. For instance, Truflation is constructing the first futures commodity index exchange by integrating its data with layer 1 blockchain injective.

Aggregators of Data

TSN can only provide real-time economic and financial data through its network of allowed data aggregators. Their responsibilities include the indexing and aggregation of data and the verification of its composability.

Operators of TSN Nodes

By maintaining the requisite infrastructure and software updates, node operators guarantee the validity and availability of data, as well as the computation and distribution of TSN’s indexes.

The network of node operators operates on a delegated proof-of-stake model. Delegated tokens are awarded to each node operator in recognition of their contributions. In exchange, they must adhere to availability standards to prevent the possibility of reduction.

Validators and Stream Managers

Stream administrators are involved in the process of qualification and verification. Elevated validators carry out data curation and validation to safeguard the network. Validators will stake TSN’s native TRUF tokens to verify the data.

The Truflation (TRUF) Token

The Truflation Stream Network (TSN) protocol is intended to integrate real-time economic data into decentralized finance applications. The TRUF token includes the TSN, the economic layer for Truflation’s products and ecosystem. TRUF is an ERC-20 token based on Ethereum and utilized for three primary purposes: staking, governance, and fees. The development of Truflation is theoretically guided by those with the most investment (financial and otherwise) in the latter two, as they are closely related.

• Fees: Data consumers pay the network in TRUF to obtain the information they require.
• Governance: TRUF holders can stake and secure their tokens for predetermined periods. By doing so, they are awarded veTRUF (voting escrow TRUF), which guarantees them the ability to vote. Curve was the first to introduce this model.
• Staking: To engage in network activities such as data facilitation and provision, TSN node administrators must stake TRUF tokens. This process generates veTRUF, which they can then utilize in governance.

Primary Utility Functions of TRUF

Operation of the Data Provider Node

To become a network member, Data Providers must stake TRUF tokens in the Governance Portal. This guarantees adherence to the protocol and commitment. Additionally, these stacked TRUF tokens will enable Data Providers to partake in the governance of the overall protocol, thereby enabling them to authenticate and adjudicate the direction of the protocol.

Data Provision and Data Consumption

Users of Truflation will be required to pay TRUF tokens to access network data. These rewards will also be used to provide additional incentives to data providers and contributors throughout the network.

Governance

Truflation governance mechanisms differ depending on the issue they address. Governance empowers users through innovative coin voting and reputation scores. The Truflation token (TRUF) facilitates the operation of data provider nodes, data provision, data consumption, and governance. By staking and securing tokens for specified periods, token holders can actively engage in governance.

Staking

The Truflation Staking Program is currently operational. This initiative enables users to acquire governance authority and earn additional rewards by staking TRUF tokens.

Staking is securing TRUF tokens for a predetermined period to acquire voting power and rewards within the Truflation ecosystem. By participating, users can contribute to the network’s security and have a voice in governance decisions, all while earning additional TRUF tokens.

The following are the stake scenarios for TRUF tokens:

• Stake: This is a scenario where users secure TRUF tokens for a specified duration. The quantity of veTRUF tokens the users receive depends on the duration and amount of the stake.
• Stake Extension: To accumulate additional rewards, the users can extend the staking period or quantity.
• Un-stake: The users can withdraw their staked tokens after concluding the staking period.

It is crucial to recognize that users can only un-stake after reaching maturity. The pledged tokens can only be extended and withdrawn after the period has elapsed. The incentive for staking TRUF tokens is the accumulation of additional TRUF tokens in a linear fashion over time. The total number of participants, rewards, and campaign duration determine the reward rate. The veTRUF tokens issued to users upon staking grant them governance rights in terms of voting power. By transferring veTRUF to an alternative address, users who possess this token can transmit voting power.

Advantages of Staking

• Increase user earnings: Users receive additional TRUF tokens as staking rewards.
• Governance: With this right, users can influence decisions within the Truflation ecosystem.
• Assist the network: By staking tokens, users can contribute to the network’s stability and security.

Holders of TRUF tokens may engage in the governance of Truflation by staking and securing their tokens for specified durations. Due to this staking and locking mechanism, users receive Vote-Escrow TRUF tokens (veTRUF). Holders of veTRUF tokens are granted the ability to vote on various protocol decision-making proposals.

Tokenomics

The TRUF token has a maximum total supply of 1 billion tokens. The initial allocations for the following ecosystem contributors are as follows:

Investors and early contributors: Twenty-five percent of the entire supply of TRUF tokens is reserved for investors and early contributors. This allocation aims to assist the network’s long-term and early supporters in bootstrapping growth. The investors’ vesting schedule is 5% at TGE, followed by a daily linear progression over 24 months.

Team and Recruitment: The primary development team is allocated 13% of the team and recruitment allocation. The vesting schedule is a six-month precipice, followed by a daily linear progression over 48 months.

Ecosystem Growth and Communities: The allocation for ecosystem growth rewards and liquidity supplied to exchanges is 60%, with a vesting schedule of 13.58% at TGE, 0.96% for ten months, and 0.89% for the next 86 months.

Experienced advisors are allocated 2% of the team and recruitment budget. The vesting schedule follows a 12-month precipice and a daily linear progression over 48 months.

How to Get Truflation (TRUF) Token

The TRUF token is the economic foundation for the Truflation Stream Network (TSN), which is intended to incorporate real-time economic data into decentralized finance applications. Users can buy TRUF tokens on centralized exchanges like Gate.io and decentralized exchanges like Uniswap and Aerodrome.

• Go to Gate.io Exchange and create an account by entering your email ID and password.
• Set up your fund password by entering settings; this password will be asked during fund withdrawal.
• To buy TRUF tokens, you must complete KYC with the proper documents.
• After KYC, go to Spot Trade, search for TRUF, and select.
• After opening the new page, fill in the amount in TRUFor USDT you want to buy, and click the buy button.
• After a successful buy, go to the Wallet > Withdraw page.
• Here, select TRUF, and then enter the wallet address.
• It will ask you for your fund password, 2FA, and email code; enter them correctly and submit.
• Your TRUF will arrive in your wallet after a few confirmations.

Conclusion

Truflation is a substantial development in financial data services, particularly in measuring and analyzing inflation. It is distinguished from conventional methods such as the Consumer Price Index (CPI) by its real-time data updates, extensive data capture, and utilization of blockchain technology to ensure transparency and accuracy. Truflation is on the brink of becoming a critical resource for investors, economists, and policymakers searching for precise and current financial data as the platform develops and broadens its offerings.