The price of Holo (HOT) shot up by 30% leading into the first day of February, as the ERC20 token proved quickest to rebound following a week of general descent.
Monthly growth now stands at 199% for a token which is moving ever closer to completing a major milestone outlined in its Green-Paper – namely, the launch of the Holo mainnet; its departure from Ethereum, and the introduction of a new network currency, Holo fuel.
Anticipation of the Holo fuel launch appeared to be driving HOT’s monumental ascension throughout the month of January, as suggested here one week into the surge. Holo’s rise was also likely aided by some very positive reviews in early January’s edition of the Weiss Ratings.
So what is Holo fuel, and what does it mean for HOT holders?Holo Fuel
Holo fuel will be the internal network currency which powers the Holochain mainnet, and will be backed by the hosting capacity of the entire Holo ecosystem. As explained in Holo Fuel Economics 101, the concept arose in an attempt to find long-term price stability:
“From an economic perspective, we need price signals that are both stable AND accurately reflect underlying activity, so that users and hosts can make long term plans with confidence. We assert that this requires a currency that is backed by the hosting capacity of the network.”
Holo fuel will be exchanged at a 1:1 ratio for HOT tokens – however, unlike many mainnet swaps, the HOT token won’t be going away. Instead, when users purchase Holo fuel in order to host on Holochain, their HOT will be locked up in a vault, to be redeemed and cashed out again for fuel at any point. More from fuel 101:
“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 ...