[Hilarium ICO Talk] How do I manage the increased amount of money circulation with the air-drop?

Hello Everyone, this is Chris Kim from the HILARIUM FOUNDATION.

For virtual currency to become a competitive digital currency, 

it must have a major function as a money.

Economists define the three main functions of currency, as the medium of exchange, the unit of calculation, and the storage of value.

The fees of Hilarium Coin are considerably lower than that of credit or debit cards. It is also convenient to use as a means of exchanging coins, at the same time, it is valuable as a means of storing value by adjusting the amount of supply.

Hilarium Coin intends to apply a model that induces a rise in coin price by adjusting the amount of currency circulation and the circulation velocity shown in Irving Fisher's presented quantity equation of money.

Quantity theory and exchange equation of money

The theory was developed by classical school economists in the 10th and early 20th centuries.

In 1911, Irving Fischer's book The Purchasing Power of Money presented an equation of the quantity of money, which later evolved into the quantity theory of money.

From Fisher's view that the circulation velocity of money is constant over a short period of time, the money quantity theory explained that nominal GDP is determined only by the amount of money circulation.

MV = PY

M: Amount of money circulation

V: Velocity of money circulation

PY: nominal GDP

First, to control the amount of money circulation, increased by air-drop, the amount of money is adjusted through the staking of coin holders. 

Second, fees incurred in Hila Pay and Hilarium exchange are incinerated.

For activating the Hilarium coin ecosystem, despite the occurring inflation through the constant air-drop, by reducing the supply amount of coins, you can hedge inflation and increase the value of coins.