Answering our Tokenholders: Why Choose “Velocity”?
Currency is the building block of “economy”. Without currency, there is no economy. The only true measure of the value of anything is people’s decisions. It is the interaction between people, their willingness to trade at a certain price, that is the only senseful way of determining “value”.
Nothing has inherent value. No goods, no services and no currency. Any value derives from the human free will. From interaction between people.
Based on these views, velocity is not only an objective expression of human interaction. Velocity is humans’ free will at play.
Any intervention from a single entity on what the “value” of a currency is, ignores this innate gift of human nature. In the “real economy”, Central Banks do this all of the time. They increase total currency supply, decreasing the value of that currency, removing purchasing power of the currency holders.
The VELO protocol is designed to operate in complete opposite manner. The increase in the VELO token’s circulation has an inverse relationship with the token’s supply. The rebase enforces the free tokenholder decisions upon token supply. Tokenholder interaction leads to surge in token scarcity, increasing it’s value.
VELO does not rebase token supply based off price. Rather, it rebases based off the behavior of tokenholders. VELO token’s value is therefore what it’s holders deem freely. This can be considered as the most accurate expression of the human free decisions on value.
“Only the free market decides on the value of VLO”
— Super Mises
Blockchain has offered us the possibility to apply new rules to the game of economy. As the VELO protocol has never been done before, the outcome is likely to be unique. I have simply supplied a testing tool to the free market. The definite outcome will result from our community.
Our Governance is now set up!
Our first governance system has been set in place! Now we have an invested community, which has fully been granted the power to direct VELO as it wishes. I encourage proposals, ideas and criticism.
They will only strengthen the VELO network.
