PolkaCash Protocol is a self-regulating permissionless stablecoin, with a USD peg that is algorithmically programmed to maintain stability through community-driven demand and supply mechanisms, by controlling money supply similarly to how central banks of the world guide the value of fiat money through monetary policy. By controlling the quantity of money supply in an economy by buying or selling bonds, a target value can be achieved (in this case 1 USD). Instead of a central bank or a currency board, rules are set and executed programmatically via smart contracts so that behaviour of the system can be predictable.