Holochain Forum

HoloFuel Reserve concern

Am a Hot Hodler since 2018 and glad still adding DCA.

A lot of talk has been said about the 1:1 swap etc.

My concern is this. Say Hot is worth 0.10c then during the 1:1 swap the market cap is $16.9Billion. From my understanding, to be able to absorb this, Holofuel reserve should have a hosting value of $16.9B as well to maintain the 1:1 relationship.

I find it quite far fetched that Beta will accumulate this wealth through hosting. In the long run I am confident it will but at the swap cannot reason it. Lets say there would be 10000 Holoports connected considering the total combined capacity/storage resources cannot value 16.9B.

Anyone can help me with my reasoning pls?

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I would like to know this too actually.

Hi Darren,

I’m not sure I fully follow your logic around the reserve account specifically, but if I understand the gist your question could be paraphrased as:

"If HoloFuel is backed by the hosting capacity of the network, and we have to issue $16.9B worth of HoloFuel in return for HOT, how can the hosting network back that much value at swap?

Assuming that is a reasonable interpretation of your question, then I think the answer lies in this statement:

Say Hot is worth 0.10c

And specifically, why would HOT be worth 0.10c if the network cannot accumulate this wealth?

You have rephrased correctly.

I think we are in the right direction… The actual value of HOT should be drastically lower even than the ICO price to be mutually equal to the HoloFuel value. Before mass adoption HoloFuel price would be ridiculously cheap.

So who will actually dictate the price for the swap? Say the swap is today and the price is $0.01 how will this work out ?

Can you see my confusion in interpreting this?

Great question. I wonder how the simulation of this question would be.