Which is better to buy. 2 holoport+ or 4 holoport. For earning More Holofuel?
And After 6 months of token Swap from HOT to Holofuel? Will the 1:1 ration change ? and how would that effect HoT(Erc20) token holders. As if i redeem to HoloFuel. I cant Redeem back to Hot ERc20 as in Reserve only Host providers can sell. can someone clear these?
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Same question here… What will happen to HOT holders after that 6 month tokenswap period? I know it’ll be 1:1 ratio… but what I dont understand is how the future will be of HOT if you can also exchange HOLOFUEL directly?
good questions…
It is my understanding that HOT will still be redeemable 1:1 for Holo Fuel once the Beta MainNet launches, with one adjustment where the ERC-20 tokens will not be burned right away and instead used as a reserve currency. This is beneficial to the ecosystem because it allows for a time period of a ‘bridged’ economic system until the market value of Holo Fuel is realized. It offers user and host protection during the initial phases of launch by utilizing the benefits of reserve accounts.
It is my opinion is that this is a good decision.
By not burning the tokens for 6 months, it gives Holo the ability to provide efficient liquidity and a more stable economy during the transition.
check out:
"This change is necessary because each reserve stabilises Holo fuel relative to that reserve’s currency. This means that Holo fuel takes on some of the reserve currency volatility characteristics. Given the extreme volatility and issues facing existing cryptocurrencies, we hesitate to link Holo fuel to them. Using HOT as a reserve currency provides Holo users with a path to cash in and out of cryptocurrencies, while preventing Holo fuel prices from being bound to the volatility and issues of other projects.
This change is not dilutive because it does not add any additional HOT or Holo fuel into circulation. The initial conversion of HOT into Holo fuel does not change, and HOT only re-enters circulation when an equivalent amount of Holo fuel is redeemed and taken out of circulation at a reserve."
“The first reserves will be created by Holo. This is done purely for practical reasons. First, reserves need liquidity to function well, so we want to ensure that critical mass is achieved before additional reserves are created. Second, there will be a regulatory complexity involved and we want to clarify these on behalf of the community first. Third, reserves obviously have systemic impact by design, so we need to be careful with the roll out.”
" The Holo fuel price at a reserve is a critical management variable since it acts as a stabilisation price. Reserves do not have agency and act on behalf of hosts. Therefore the price on the reserve accounts will reflect the pricing preferences of hosts. Specifically, hosts are able to set their personal floor price for Holo fuel in their management software. So for example a host could set it so that Holo fuel will not be redeemed below $0.1. Reserves will collect data on all hosts individual floor prices and then set a reserve price, for example top quartile pricing. This price would of course refresh to take account of new data. There may be additional feedback loops. For example if Holo fuel is consistently sold out on reserves the price could automatically increase.
In contrast, Holo fuel is redeemed based on LIFO prices, or the most recent price it was bought at. This ensures hosts receive a price that is close to market/spot. It also means that all fuel from a reserve is fully backed and that we are not artificially propping up prices.
Finally, reserves do not replace exchanges, since only fuel earned from hosting can be redeemed."
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