Storyfuel
Currency system design
Currency system design
StoryFuel, as a decentralized mutual credit currency, presents a shift from traditional monetary systems. Built on Holochain, it is designed to seamlessly integrate with the Humm platform and cater to its unique creator-consumer ecosystem. The StoryFuel treasury, as described above, serves as the economic cornerstone of this system, it issues StoryFuel, collates inputs and creates a price for StoryFuel, it holds funds for entry and withdrawal into the economy and manages offboarding.
Issuance: The initial issuance by StoryFuel Treasury acts as a stimulus to bootstrap the economy. As the system progresses, content creators are empowered to become primary issuers, adding StoryFuel credits to their consumers.
Pricing Mechanism: The pricing of StoryFuel is dynamic and can be adjusted based on demand, user engagement, and other platform metrics.
Redemption: The redemption process is streamlined for content creators. They can apply for redemption based on their credit balance. Once the request is approved, their balance is adjusted, and the equivalent value is provided to them. The model anticipates a steady redemption rate of 10% year over year.
Supply Modeling: The supply of StoryFuel is influenced by the initial issuance, subsequent issuances by creators, and the amount redeemed. With most StoryFuel circulating between users and only a fraction being redeemed, the supply exhibits a dynamic pattern.
Transactions, Taxes, and Restrictions: A combination of a 1% transaction fee and a 5% redemption fee is the proposed currency fee to operate StoryFuel. Humm provides a creator-centric protocol that's zero knowledge with zero fees.
StoryFuel intersects the digital creator economy and decentralized finance. Designed as a mutual credit currency, its issuance is rooted in two primary avenues:
-
Direct sale by StoryFuel treasury to investors at a preferential rate.
-
Issuance upon demand when users desire to access content.
This dual-pronged approach ensures a balanced ecosystem where both initial capital infusion and consistent demand drive the value and circulation of StoryFuel.
Issuance, direct sale
To kickstart the StoryFuel ecosystem, Humm offers an initial batch of StoryFuel tokens to investors at a discounted rate. This initial sale serves multiple purposes:
-
Capital Infusion: Provides Humm with the necessary capital to develop, promote, and maintain the platform.
-
Token Distribution: By selling tokens to a diverse group of investors, the risk of centralization and token hoarding is minimized.
-
Market Confidence: Early investment by institutional or notable investors can instill confidence in other potential users and stakeholders.
Let SiS represent the StoryFuel tokens sold to investors and D be the discount rate offered.
Si=P×(1−D)
Where P = Proposed price of StoryFuel without discounts.
Issuance for Content Access
As the primary utility of StoryFuel is to access content, its issuance is intrinsically tied to user demand. Users can acquire StoryFuel in two ways:
Direct Purchase with Fiat or Crypto: Users can buy StoryFuel directly from Humm using traditional fiat currencies or select cryptocurrencies. The price will be determined by current market rates and any applicable fees.
Purchase on Secondary Markets: For those familiar with cryptocurrency markets, StoryFuel can be acquired on various exchanges. This introduces a dynamic pricing mechanism influenced by supply and demand forces.
Let Su represent the StoryFuel tokens used to access content.
Su=C×Pf
Where C = Cost of content in fiat or crypto and Pf = Conversion rate of fiat or crypto to StoryFuel.
This visualization provides a holistic perspective of the StoryFuel ecosystem's trajectory. The annual new issuance (green bars) gives insights into the yearly inflow of new StoryFuel. In contrast, the cumulative issuance (yellow line) captures the cumulative supply of StoryFuel over the years. The blue annotations offer additional context, linking the growth in the number of creators to the issuance dynamics. The escalating demand for StoryFuel, in tandem with the platform's growth, underscores the robust and adaptive nature of the issuance mechanism.
The chart depicts the changing dynamics of StoryFuel acquisition over time. The green region represents the percentage of StoryFuel acquired directly, while the yellow region signifies the percentage acquired from secondary markets. As we move from year 1 to year 20, there's a gradual shift with a decreasing proportion of direct purchases and an increasing reliance on secondary markets. This trend might indicate maturation in the market dynamics, with more users opting to acquire StoryFuel from existing holders rather than purchasing it directly from the platform.