The creation of digital assets
Bitcoin, the first digital asset, proved that we could disrupt the financial sector by decentralizing a store of value and using a peer-to-peer transactional system. In the process, Bitcoin created an industry upon which adopters have attempted to capitalize, with products ranging from better blockchains to full-blown ecosystems.
The most popular offering remains the token, usually in the form of a cryptocurrency. In cryptocurrencies, the transfer function is responsible for the currency aspect of the token as it enables a user to transfer tokens to another user as a form of payment. However, tokens can also be used as crypto-commodities to store the value of an asset, commodity, utility, or contract. In contrast to cryptocurrencies, crypto-commodities cannot be transferred; they can only be bought or sold.
HODLCommodity (HODLC) is a crypto-commodity token. HODLC is measured against fiat currency, and its transactional value can never decrease. However, it’s not a crypto-currency in that it cannot be given away or transferred to another user; HODLC must be purchased. With each purchase, value increases. As such, it creates a never-ending cycle of value generation for participants.
HODLToken (HODLT) is the simplest way to use HODLC. While HODLC cannot be transferred or given away, HODLT can. HODLT can be used to make payments, offer rewards, donate to charity, conduct trades on centralized exchanges, or be given to your friends. HODLT is a transferable ERC-20 token built on the Ethereum blockchain as a smart contract. HODLT can be “locked” into a certificate by any HODLC owner but can be redeemed for HODLC at any time.
How it works
HODL is built on the Ethereum blockchain. As such, it holds the advantages of available liquidity and highly-adopted consensus. To ensure the project remains autonomous, the Ether used to purchase HODL from the smart contract reserve is randomly redistributed to existing HODL owners.
HODL is a unique digital asset.
● The smart contract belongs to no one, is controlled by no one, and is made for everyone.
● It is measured against fiat currency, not unlike stablecoins. In this case, USD.
● Its transactional value can never decrease, although its growth may accelerate or decelerate from time to time.
● Its store of value defies general conceptions of how value should be asserted.
● The HODLCommodity store of value cannot be given away or transferred; it must be purchased.
● The store of value can be issued as a tradable certificate called HODLT, which are built following the ERC-20 token standard. This token can be redeemed back to HODLC using the decentralized exchange.
● Because its value increases dynamically, it creates a never-ending cycle of buyers and sellers.
● As value creation is based on trading and awareness, stakeholders are naturally incentivized to promote and grow the community.
● The long term sustainability of the network is based on recurrent usage from the community as a savings mechanism.
● Every successful transaction increases the value dynamically by 100th of a cent (US$0.0001).
● HODLC increases in value automatically by a small fraction every day due to the API.
The HODL approach to governance is purely decentralized. Care must be taken at every stage to ensure the HODL project does not belong to anyone, in the purest form of decentralization philosophy. There are no founders, owners, egos, or projects. There is only the predictable and unescapable promise of the road ahead. No tokens are pre-mined or allocated, and none can ever be minted.
The experiment is purely decentralized. Actions are the voting mechanism.
The token’s nature and the process are designed to inspire the imagination of onlookers. To achieve its goals, potential growth must be driven by the participants as a strong balancing force between HODLing and trading. HODL is best thought of like a game of strategy, timing when to hold and when to trade.
The rules are easy to master:
● Anyone may participate, although a valid trading account is required. This may vary according to jurisdiction.
● Participants may enter or leave at any time.
● Participants may buy from the smart contract or a seller.
● Participants may sell to other participants.
● HODLC cannot be given away.
● HODLC can be issued as tokens (HODLT).
● Buying and selling HODLC increases the value of HODLC.
● Excessive HODLing causes the value to stagnate.
● Participants can impact the value of HODLC by trading or evangelizing.
● Each participant must find the right balance between holding and trading.
● The expectation of profit is a core value of the HODL commodity.
● The only weakness would be if HODLCommodity becomes forgotten or lacks awareness.
● The HODL community should be a democratic grassroots effort.
● No guiding organization should be established.
● No one owns the project.
The shockwaves created by digital assets are still spilling over from the crypto world into the concrete one. In the future, the financial landscape looks to be disrupted by:
● Interest-free loans – with the cycle of value generation, interest-free loans are possible as the value increase in HODL could realize the “interest”.
● HODL-backed lines of credit – lines of credit could be extended to traditional high-risk clients based on their HODL holdings, which are guaranteed never to depreciate.
● Pension funds – pension funds could safely invest in HODL without worrying about asset depreciation or market cycles; the investment is safe and guaranteed to grow.
● Personal retirement savings – investment in HODL can help offset personal retirement savings as HODL can be used as the low-risk investment, allowing greater contributions to higher-risk investments to yield a greater return.
● Education funds – early purchases or gifts of HODL can be liquidated to offset the high cost of a university or trade school education; the sooner the HODL is purchased, the greater the purchasing power it will have in the future.
As HODL and other digital assets continue to grow and become more commonplace, the opportunities for HODL to complement or even displace traditional savings methods will increase. We’re at just the tip of the iceberg.