Initiativeq: velocity of money in New Dimension

Every Q network member wants to know how valuable Qs can become. If Initiative Q succeeds in creating a world leading payment network, it is expected that the Qs reserved today for members will eventually be granted at a value of roughly one US dollar per Q.

The following economic model explains the reasoning behind this estimate and the mechanisms used to maintain the long-term value of Qs along with the growth of the Q network.

Value: the Equation of Exchange

The value of a currency is affected by multiple factors. The equation of exchange introduces the “velocity of money”, defined as the total expenditures (or income) in that currency, divided by the money supply (the total amount of currency in circulation). The world’s total economic activity is around 100 trillion US dollars, and the total amount of money in the world is between 40 and 90 trillion dollars (depending on the definition of money). This gives a global average velocity of money of around 2, which indicates that each unit of currency changes hands roughly twice a year. In other words, at any given time people hold money balances equal to around half a year’s worth of income (or purchases).

Enter Initiative Q’s payment model

Initiative Q is creating a modern payment network that will aggregate the best ideas, innovations, and technologies developed in recent years. The Q payment network will allow safe, fast, and low-cost transactions, using a global currency.

Many of the ideas that Initiative Q will include already exist in some form, but thus far they have gained only limited acceptance, and there is no universal system that integrates them all. This is due to a classic chicken and egg barrier: No buyer wants to join a new network with no sellers, and no seller will offer a payment option that no buyer uses. Initiative Q will overcome this barrier by distributing its currency—Q—for free to early adopters, creating incentive for its adoption and use.