A new approach to cryptoasset valuations.
Velocity Thesis Problems
- It claims to be a catch-all to make the two sides of the equation of exchange balance
- Changes in velocity correlate with changes in PQ - but that isn't always the case.
- Needs to be precisely defined and measurable, and it's not.
Monetary Critique of INET Model
- Demand for money and commodities should be decoupled
- Utility tokens should be seen to compete with other assets for holders
- Transactional demand/speculative demand should be conceptually distinct
- Blockchain economies are highly frictional
- Velocity varies over time and should be distinctly measurable
- Expanding on pattern payments matter
VOLT: A Two-Asset Model with Endogenous Velocity
- VOLT Supply Schedule
- VOLT Electricity Demand
- Money Demand for VOLT Tokens
- Revisiting Velocity Thesis