No. 01 of 15The idea
Why speed matters
Spending is money times its speed. VP2.0 is built to raise the speed, not the quantity.
- Fisher: “The equation of exchange is simply the sum of the equations involved in all individual exchanges in a year.”
- Its speed is “the velocity of circulation, or rapidity of turnover”: a year’s “total money payments for goods” divided by “the average amount of money in circulation”.
- So spending rises two ways: more money at the same speed, or the same money spent more often.
- Prices move with money “provided the velocity of circulation of that money and the volume of trade which it is obliged to perform are not changed”: speed weighs as much as quantity.
- In a slump, the speed goes missing: “the average dollar circulates only about a third as fast as usual”.
- Fisher’s remedy was, in his words, “a fleet-footed currency which nobody can hoard”: stamp scrip “will be unloaded twice a week - a speed that is four times the speed of an average dollar in normal times”.
- At Wörgl in 1932, “the amount of the first wages paid has returned to the city 20 times a month”.
- VP2.0 works the speed: a holding fee on idle balances, a spending reward on purchases, and a network “configured to perform autonomous velocity-governing operations”.
A dollar does work each time it changes hands: it pays the grocer, who pays the baker, who pays the farmer.
The first wages Wörgl paid in 1932 came back to the town twenty times a month, its mayor reported: twenty payments from the same money. When money sits, it pays no one, and in a slump Fisher found the average dollar moving a third as fast as usual.
When the Federal Reserve buys Treasury bills, the reserves in the banking system grow: that is the quantity side. VP2.0 works on the speed: it charges money that sits and rewards money that moves.
One month · the same $100
paid to the people it passes, at 2.17 turns a month
- Fisher, 1933: in a depression the average dollar circulates “only about a third as fast as usual”.
- Fisher, 1933: stamp scrip at twice a week is “four times the speed of an average dollar in normal times”, so the average dollar turns once every two weeks.
- Fisher, 1933: “the average scrip certificate will be unloaded twice a week”.
- The mayor of Wörgl: the first wages paid “returned to the city 20 times a month”.
Two levers
Two ways to raise spending
More money
The quantity
When the Federal Reserve buys Treasury bills, the money it pays becomes reserves in the banking system.
“These RMPs—which increase the size of the Fed’s balance sheet and the amount of reserves in the banking system—would consist of Treasury bills”
Federal Reserve Bank of New York, 2026
“inflation at the rate of 2 percent”
Federal Open Market Committee, 2025
Faster money
The speed
VP2.0 charges money that sits and rewards money that moves, to have the same money spent more often.
“An illustrative, non-limiting holding-fee rate may fall within a range of approximately 0.5% to 2% of the unspent balance per interval, while an illustrative, non-limiting spending-reward rate credited to a network participant 110 responsive to a transaction may fall within a range of approximately 5% to 10% of the transaction value.”
VP2.0 specification
“A distributed digital-currency ledger network configured to perform autonomous velocity-governing operations, the network comprising:”
VP2.0 · Claim 2
The sources in fullevery quotation on this page, where it stands
“The important magnitude, called the velocity of circulation, or rapidity of turnover, is simply the quotient obtained by dividing the total money payments for goods in the course of a year by the average amount of money in circulation by which those payments are effected.”
Fisher, The Purchasing Power of Money (2d ed. 1922), ch. II
“A distributed digital-currency ledger network configured to perform autonomous velocity-governing operations, the network comprising:”
VP2.0 · Claim 2
“The equation of exchange is simply the sum of the equations involved in all individual exchanges in a year.”
Fisher, The Purchasing Power of Money (2d ed. 1922), ch. II
How it is read payments = money × velocity, so raising either factor while the other holds raises payments.
“the level of prices varies directly with the quantity of money in circulation, provided the velocity of circulation of that money and the volume of trade which it is obliged to perform are not changed.”
Fisher, The Purchasing Power of Money (2d ed. 1922), ch. II
“We may, if we wish, further simplify the right side by writing it in the form PT where P is a weighted average of all the p’s, and T is the sum of all the Q’s.”
Fisher, The Purchasing Power of Money (2d ed. 1922), ch. II
How it is read in MV = PT the money and its velocity enter as one product, so a 10% rise in V moves the left side exactly as a 10% rise in M does.
“In depression times, the average dollar circulates only about a third as fast as usual so that a turnover of twice a week becomes twelve times the depression average for conventional money.”
Fisher, Stamp Scrip (1933), ch. III
“But the $1000 of legal tender thus tied up is a slow-moving currency which everybody has been hoarding, while the $1000 of scrip which temporarily supplants it is a fleet-footed currency which nobody can hoard.”
Fisher, Stamp Scrip (1933), ch. III
“At the very least, the average scrip certificate will be unloaded twice a week - a speed that is four times the speed of an average dollar in normal times.”
Fisher, Stamp Scrip (1933), ch. III
“Meanwhile the extra speed is of the utmost benefit in a depression when everyone is afraid to spend real money.”
Fisher, Stamp Scrip (1933), ch. III
“As to the rate of turnover, the mayor reports that the amount of the first wages paid has returned to the city 20 times a month.”
Fisher, Stamp Scrip (1933), ch. IV
“Continuing the illustrative eight-operation economic cycle, a network participant 110 may transfer value to a merchant participant, a transaction fee may be deducted and directed to economic-stimulation fund 400, economic-stimulation fund 400 may allocate a portion of the received fee to a rewards pool, the rewards pool may credit a spending reward to the transacting network participant 110, a holding fee may be periodically deducted from an unspent wallet balance and directed to economic-stimulation fund 400, economic-stimulation fund 400 may allocate a further portion to reinvestment and participation support 170, reinvestment and participation support 170 may pay an eligible worker or other approved recipient for an eligible activity, and the recipient may spend the received value with a merchant participant, thereby returning transaction-derived value to transaction activity and circulation 120.”
VP2.0 specification
How it is read each exchange pays the seller, and the seller’s next purchase pays another.
“These RMPs—which increase the size of the Fed’s balance sheet and the amount of reserves in the banking system—would consist of Treasury bills and, if needed, other Treasury securities with remaining maturities of three years or less.”
Federal Reserve Bank of New York, The Teller Window (Mar. 31, 2026)
How it is read twice a week is four times the normal speed, so the normal speed is once in two weeks: 26 turns a year.
How it is read payments = money × velocity.
“a telemetry subsystem configured to obtain ledger-operation telemetry representing at least transaction activity, network participation, economic operation, validation operation, governance operation, value-allocation operation, and ledger formation;”
VP2.0 · Claim 2
“a parameter-transition control mechanism configured to constrain the parameter-state update according to an authorized transition rule;”
VP2.0 · Claim 2
How it is read claim 2 names the network by what it governs, its velocity: it is “configured to perform autonomous velocity-governing operations”. A velocity currency, in this site’s words, is a currency governed by the speed of its money rather than by its quantity.
The same equation, the other way If the same money moves faster while the goods for sale do not grow, prices rise, as they do when there is more money: in Fisher’s equation the money and its speed enter as one product. The specification keeps each rate inside an authorized range and has the network measure the effect of every change before the next.