HODLCommodity is a crypto-commodity. It can only be traded, i.e., bought or sold, using its decentralized exchange to exchange Ether for HODLC. The value of HODLC is determined in the smart contract and denominated in a fiat currency comparator (US$) to arbitrage the current value in Ether at any given time. This is not dissimilar to stabletokens.
Its value is determined by the number of transactions occurring within the network, called the Dynamic Price Increase (DPI), and another automatic daily increase called Automatic Price Increase (API).
Dynamic Price Increase (DPI)
The Dynamic Price Increase (DPI) is a core feature of HODLCommodity. Every time a successful transaction is completed between two participants, the price increases by US$0.0001. To explain how it works, I will use a story about rice traders.
Alice needs to buy 100kg of rice (HODLC) for her village.
Alice goes to the rice market (HODLdex), where Bob, Chris, and David sell their respective rice. There is also a city reserve that may sell rice if there is not enough available on the market at any given time. The reserve always sells their rice at full price, $2.00 per 25kg bag.
Bob has 25kg of rice to sell (sell order) at $1.00 per 25kg bag.
Chris has 25kg of rice to sell at $1.25 per 25kg bag.
David has 25kg of rice to sell at $1.30 per 25kg bag.
Alice buys one 25kg bag from Bob, Chris and David ($3.55 total), but she still needs another 25kg bag of rice to fill her need (buy demand). As there are no more merchants selling rice, Alice buys a 25kg bag of rice from the reserve at $2.00 per 25kg of rice.
Alice’s total is $5.55 for the rice (trade) plus her transport fees (gas fees) to get home from the market. Alice has successfully executed four (4) trade orders (Bob, Chris, David, and the reserve); thus, the rice price rose 4 times $0.0001.
Each successful transaction between Alice and another participant or the reserve has generated one (1) Dynamic Price Increase. This process is fully automated, and Alice only had to start successfully buying rice for this to happen.
The Automated Price Increase (API)
The Automated Price Increase (API) is a process in which the current value (full price) of HODLC increases daily by a tiny percentage (%). This percentage applies every day and follows a 12-month cycle. Following the completion of a 12-month cycle, the price will have increased by 100% (doubled). Every day, the value of HODLC sees a small percentage of its actual value added to its new total. This ensures a specific yield over a long period. The calculations are always made on the current price, which is heavily impacted by the number of successfully executed trades (dynamic increase). To follow the rice example, we could say that the price of rice offered by the merchants and the reserve increases daily by a small fraction.
- HODLC never decreases in value; thus, it is always a buying opportunity.
- HODLC value cannot be manipulated within the decentralized exchange, creating a chance at arbitrage in the OTC or secondary market, much like stabletokens.
- HODLC cannot be controlled by ownership.
- HODLC is decentralized. It has no owners, no pre-sale, and no pre-allocated tokens.
- Every HODLC has been purchased and has had value from day one.
- HODLC made a non-proprietary asset sale, a new mechanism in which the reserve token does not belong to anyone, but rather the network. When HODL is purchased from the reserve, the corresponding Ether is randomly redistributed to HODLC owners. Currently, US$250USD has been redistributed to existing HODLC owners.
- The early transaction limit of US$500 before the HODLC value reaches US$10 ensures a better spread and limits the ability of large investors to acquire significant quantities of HODLC.
Predictable and non-volatile.
- It can be used for long-term financial planning.
- It enables disruptive new business models such as interest-free loans, credit lines on HODLC, and more.
HODLC is made for mass adoption by using predictability, non-volatile, and constant value growth to enable the average user to save. Simply put, it removes the cryptic from crypto.
HODLC does not demand constant learning, trading abilities, tons of research, or listening to trading signals. It is truly made for the average Joe.
HODLC is also the paradise of influencers, media partners, promoters, and community managers, as there is no need for an elaborate referral scheme or payment structure. The value creation is performed directly, and the only requirement to monetize one’s audience is to own HODLC.
HODLC is aimed at institutional funds and lenders. The API ensures a baseline growth in value, starting as 0.19% daily (100% compounded rate per year) and decreasing over a period of 30 years to 5% per year. This ensures that over a period of 10 or so years, the HODLC will become a stable asset prized by large funds because of consistent and predictable returns.
In simple terms, HODLC tokenomics are mathematically unbeatable because the value will always increase, never decrease, making it a good acquisition opportunity at any time, now or in the future.