/biz/ - Business & Finance

The economics of Holo will soon be deployed and proven with Holoports as the entire ecosystem is tested by end of year. Below is an economic explanation for why the price will exponentially increase over time:

Upfront Holo will see a ton of hosts and not many apps that need hosting. That means hosts will be competing heavily and driving the amount of HF they charge for hosting down.

When the amount of HF to host an app is lower, that then makes each Holofuel credit more valuable. As that same HF credit provides more hosting.

Ultimately, this results in people paying more money for each HOT, due to the fact that each particular HF can provide a significant amount of hosting.

The inverse is true as well. If Holo had a ton of apps needing hosting, but very few hosts willing to provide the hosting, there would be little competition for hosts. Thus hosts would charge a significant amount of HF to host said apps, which in turn makes each HOT less valuable in USD, because it provides less hosting.

So, Holo very much wants to see a ton of hosts in the network upfront, and doesn't need a ton of apps. With that in mind, there will be way more hosts then apps upfront, this is already known. And that lack of a ton of apps upfront will actually warrant a price explosion for HOT.


In the begining, the price to host an app on Holochain will also be minimal compared to other hosting providers. This is because HOT is extremely cheap to buy upfront and the HF credit you receive will be providing a ton of value due to the significant competition between hosts lowering the amount of HF they charge.

Over time, this will cause app developers to load up on cheap HOT early and begin porting apps towards holochain/Holo simply for how cheap hosting will be on the platform. Due to the various economic factors baked into Holo, the price of HOT will start to grow exponentially as people begin to see this play out in real life, which is coming by EOY.

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