How can a currency be tied to a commodity like energy? To make a stable (crypto)currency it basically needs to be tied to a thing of value that can not be just flooded onto the market with minimal effort. I think energy is the ideal thing to tie a currency to because basically everything in modern society is dependent on energy or creating or using energy in some form.
But energy can not be easily stored and traded for normal persons so you need some form of stand-in as a currency so i am thinking like 1 &quot;currency coin&quot; is worth 1 kwh. And that to make new coins for the system you have to produce/extract the same amount of energy to the grid. And when that energy is used the &quot;currency coin&quot; is destroyed so there will be a pretty fixed amount of money in the system at any time. And i want it to be decentralized.
But how can this be done? How do you verify that you have supplied the energy to the grid in a secure way? And how can you make sure that the currency value is always tied with the energy value?
I know that bitcoin is kind of tied to energy because you have to use X amount of energy to mine one coin, but this is wasted energy, not energy supplied to a grid to benefit the population.
But energy can not be easily stored and traded for normal persons so you need some form of stand-in as a currency so i am thinking like 1 &quot;currency coin&quot; is worth 1 kwh. And that to make new coins for the system you have to produce/extract the same amount of energy to the grid. And when that energy is used the &quot;currency coin&quot; is destroyed so there will be a pretty fixed amount of money in the system at any time.

This concept does not work with electrical energy.
If we look at “conventional” electrical grids, they ideally would have no resistance, and the grid transmits power (units of energy/second) through the grid without loss, and there is no stored energy. (In practice, the grid has capacitance/inductance, and some energy is temporarily stored.)
The outlined currency scheme would result in a currency unit created and immediately destroyed as used.
The rise of intermittent renewable energy has created a greater need for storage. However, the storage is not in the form of electrical charge in the grid, it is is in some mechanical/chemical store of energy. All storage technologies have inefficiencies, so that energy is lost. There is no one-to-one accounting between input and output energy a currency implies. Furthermore, storage is only useful if it is dissipated during production shortfalls, so the currency backing would disappear each night.
Meanwhile, market prices for intra-day electricity are extremely volatile (since there is no way to carry inventory), so it is not useful as a unit of account.
A currency could be backed by oil reserves - a form of potential energy - but one may note that no oil producer has pegged their currency to oil prices.