Why is there no supply limit for Holo fuel?

Having a dynamic supply allows Holo fuel to adapt to the needs of the hosting economy, protecting it against extreme price volatility.

Dynamic supply is inherent in the design of a mutual credit currency, where every credit (positive) has an equally matching debit (negative). The constant interplay between positive and negative accounts determines the circulating supply at any given moment.

This dynamism is critical for Holo fuel to be useful as a medium of exchange. It allows the supply to organically respond to demand in the hosting economy, expanding or contracting as demand increases or falls (see “How does Holo fuel’s dynamic supply work?” for more details).

A currency with wild price movements is good for speculative swing trading, but not for a day-to-day, productive use. Holo fuel is made to be stable enough for normal people to trust with doing business.

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