Holo’s Asset-Backed Cryptocurrency
HoloFuel is a whole new breed of cryptocurrency. Unlike its predecessors, it is not a crypto-token or cryptocoin, but a mutual credit accounting system where every transaction is countersigned on the local chains of both counterparties. This design allows crypto-credits to forge new patterns of social and market behaviors that have not previously been possible.Read the Currency Paper
Holo credits are designed to power distributed applications operated by a network of hosts who provide computing power. Therefore, specific roles and responsibilities are defined within this ecosystem.
Hodler’s of HOT will have the option to swap into HoloFuel at the HOT reserve account at Beta launch.Read more
We expect the largest variations of supply to happen through Reserve Accounts. The supply of
credits expands when a reserve account (such as the Holo organization) sells hosting credits for a
correlated outside crypto or national currency. Reserve Accounts have a special algorithm for
expanding their credit limit by committing a Proof-of-Reserve record to their chain to demonstrate
receipt of a payment in the accounts’ correlated outside currency for Holo credits. The outside
funds are then held in reserve for network hosts who receive credits from purchasers of their services. Any
credits redeemed through a Reserve Account must have been earned for providing hosting,
which can be confirmed by auditing hosts’ Proof-of-Service entries and transaction histories.
While Reserve Accounts may temporarily expand the supply, they only do so in response to increased demand. As hosts redeem their hosting credits, the supply decreases again. The expansion of the supply raises liquidity for hosts giving them an opportunity to cash out increasing perceived value.