HoloFuel is a Holochain-based currency that is a contractual service obligation, redeemable for hosting. HoloFuel is a mutual-credit accounting system capable of performing billions of daily microtransactions. Its primary use is for Holochain application (hApp) providers to pay Holo hosts for their services.
HoloFuel marks the beginning of a new era of cryptocurrencies backed by the capacity provided by people. All of the currency supply is correlated to building and providing the computing power of the Holo network. We always create that value together.
Most cryptocurrencies are modeled as digital objects tracked on a global ledger. With HoloFuel, each user has their own ledger showing their account balance and transaction history. Each transaction requires an agreement between two people, which is then recorded on their respective ledgers and validated by peers in the network.
Mutual credit means that every credit (positive) has an equally matching debit (negative), giving a net supply of zero and a dynamic circulating supply that’s responsive to the actual market behavior of its users.
Credit limits are directly connected to a demonstrated capacity to repay a negative balance by providing hosting resources. HoloFuel is directly redeemable for hosting services. HoloFuel is therefore backed by computing power, a valuable modern asset.
Being asset-backed and having a dynamic supply means that HoloFuel can be value-stable without being static or requiring a peg. HoloFuel can optimize the market value of its units in relation to the cost of hosting, creating a steady and stable trajectory.
The agent-centric design allows for the transactions per second (TPS) to increase the more people use it, mirroring how the English language’s “words per second” increases as more people speak it. Therefore, HoloFuel is scalable for mass adoption.
There is no mining or staking involved in earning HoloFuel—only the useful work of web hosting. Anyone can become a host and be compensated by application providers who want their hApp served to the web.