As you can see there is 177 Billion HOT give or take a few. Of those 25 percent is held by Holo the company and the rest are currently out on the open markets.
The total supply of HOT will not change but once there is an official announcement, of a time and date, holders of the HOT will be able to swap it for Holo Fuel (HF).
The exact metrics of the swap has not been released at the time of writing this article but regardless, what the end goal will be is for all HOT to be swapped for HF and eventually only HF will exist.
So you are probably thinking by now, okay so if the swap is 1:1 there will be 177 Billion HF available. This is correct but also incorrect. Once all of the HOT are burned and no longer in use, and only HF is operational it will become a kind of pseudo-crypto as the total dynamics on how the HF is used goes against any traditional based Crypto and this again is something that is groundbreaking and innovative from the Holo team.
The team themselves like to call Holo a Bridge between Crypto and Mainstream.
HOLO FUEL
HF is the secret sauce and can be described as a means to effectively facilitate and record transfers of value across the Holo network, which would be on the Holochain.
This allows Holo to handle extremely high levels of micro-transactions, on the order of millions of transactions per day, since that is the nature of of how distributed hosting will be provisioned.
And the best thing about the Fuel supply (Remember earlier we covered the scarcity principle?) is that the supply is dynamic. This means that once HF is moved from an exchange or and address or place of purchase into the Holo Ecosystem, it then still holds its value but you are able to set the price yourself for the use of your fuel.
The end goal is to have ALL HF running within the Holo Ecosystem, and once it is in the Holo Ecosystem it is then managed by what is known as a “Reserve Account”. Reserve accounts add structural resilience by amplifying certain economic signals from hosts and acting on their behalf to sell/redeem Holo fuel, influencing price and supply in the process. It is important to understand that reserve accounts do not “manage” Holo fuel since that implies some form of agency and an objective function of sorts.
In plain language that means if you own HF and you are hosting (As anyone can and will be able to do from any device connected to the Internet), except maybe your smart fridge 🙂 is that you yourself set the price of the HF you want to charge to hosts and the Reserve Account will compile the aggregate amount of prices from each host and reach a common ground which will then be the “Reserve Price”. It is not yet known how often this will be updated and whether or not it is constantly providing changes as they happen but it is very likely it will.
So what that means in simple terms is that even if you own say 100 thousand HOT now, and you think to yourself, wow I only own 100 thousand out of 177 Billion, you need to keep in mind that eventually your 100 thousand HOT while you can currently buy for less than $120 USD in the future that same amount of HOT when in the form of HF could be worth a considerable amount more than the current $120.00 as the supply of Fuel will become dynamic and the price adjusted by the Holo algorithms to reflect what the hosts want to charge and to also find a common ground with hApp creators and or storage providers or any other project being used or built on the Holochain.
So now your are probably left with the question of if the supply of HF is dynamic and changing how will my 100 thousand HF be affected, could I lose out on this? The answer is that your 100 thousand HF will always be worth 100 Thousand HF until your decide to sell it or use it within the Holo ecosystem.
So in a nutshell what Holo has created is a way for you to have your cake and eat it too.
Because you can invest a small amount, into a large supply, that will one-day be a smaller supply and as demand grows your seemingly small amount compared to the current large supply will likely reverse it’s ratio therefore meaning that owning a piece of the Holo Cake is very inexpensive but in the future you could be looking at very lucrative returns with Holo.
What I have mentioned above just scratches the surface of what Holo has planned and that is without mentioning some of the things developers have planned.
It may be the case that there is not as great a hosting demand initially when Holo releases but by then I would expect the general awareness of Holo to be more mainstream, considering they are taking on giants of computing power in Amazon Web Services.
But not only are they going to do that and do it well, they are also at the same time building their own decentralized Internet and guess what?
It will all be run on Holo Fuel! So I hope that explains why the large supply at the moment could be a very small supply in the future and will likely be a way for you to have a passive income just from the fuel you own and pass on to your children and grandchildren.
And YES it really is going to be that big!
Final note: Although I am trying to make my articles about Holo as user friendly as possible, while trying to share what Holo can and will be doing without going into tech speak the next article I will try and cover how the consensus method works, how the ports will work and how the Millions of daily micro-transactions (all using HF btw) will help grow Holo into one of the most innovative tech products since the internet itself.
Disclaimer: I am not a Holo Staff member and no one is paying me to write these articles and I am personally invested in Holo. Some of the wording in this document was taken from:
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Published at Thu, 28 Feb 2019 09:10:32 +0000