Storyfuel
Humm Payments / Reserve management system
Humm Payments / Reserve management system
Reserve Accounts are a special type of StoryFuel account run by the Infrastructure provider which is bound to an outside currency where funds are held on reserve in n onchain vault. HUMMP (Humm Payments Network) holds these credits for hosts who have provided hosting services have the liquidity to exit StoryFuel to pay for their related expenses (e.g. hardware, bandwidth, electricity, Credit limits of Reserve Accounts expand correlated to proof of funds deposited in the outside currency, so that the Reserve Account can send the StoryFuel hosting credits to the account of the person who sent the outside funds. The credit limit contracts again correlated to the funds that hosts redeem from the outside currency. This means the account’s credit limit (and negative balance) are always connected to the funds in the outside account. To perform its role adequately the Reserve Account must be transparent and demonstrate proof of funds and ongoing receipt and disbursal of funds.
Prices of StoryFuel in each outside reserve currency are calculated from a valuation algorithm based on data collected from hives about their reserve currency preferences and the actual patterns of consumers using the reserve accounts. The algorithm will also adjust prices for external market volatility to ensure different reserves are priced proportional to their relative value and the demand by hosts to access that reserve currency. HUMMP may cap Reserve Accounts based on capacity growth and demand. Significant expansions of supply should be correlated to growth and capacity of the network.