Previously I thought that by having the best smart contracts, or some other cool feature, the currency would become valuable by having a very useful feature. But that isn't it. If the money isn't good, then no one wants to make contracts in that money. Even if the contract system is perfect.
There is a natural economic relationship between volatility and the expectation that the price will rise. There is no free lunch. If holding a currency comes with the benefit of an expected price increase, then that benefit must be canceled out by the cost of increased volatility.
Currencies with fixed market caps like bitcoin, they can't grow to serve more customers without also increasing in price. So any success leads to volatility that makes it less useful. Also, there is no way to contract the money supply, for the times when demand for currency decreases. So, the price will fall during times when the demand for money decreases.
The way modern money works, it is collateralized with real assets. Assets like businesses and land and jobs. A government is going to confiscate taxes to pay back the bonds that hold up the value of their currency. Putting tax on land is the same as a mortgage contract that gives the land owner leverage. The tax collector has the other side of the mortgage contract, which is the collateral used to back the fiat currency. The centralized financial leaders can adjust the tax rules and amount of bonds sold to keep the value fairly stable.
Harberger land registries are a tool that would let us make a decentralized version of this kind of mortgaged back currency. People own their land with leverage. Their relationship to the registry is a kind of mortgage contract. Taxes are paid in veo, and the taxes are burned. Which is the same as distributing that value to all VEO holders. So VEO is the other side of the mortgage contracts. The market cap of VEO will be roughly equal to the value of assets in the registry.
What makes Amoveo different from fiat mortgaged backed currencies is that we don't depend on any centralized leadership to make decisions. The supply of VEO grows and contracts along with the amount of leverage that land owners decide to use for the mortgage contracts.
This allows regions of the planet to have different strategies depending on their own needs. If some small city or state had a surprise demand for capital, then the people there could increase the leverage on their land to make more capital available. When the demand for capital falls down, land owners can absorb that excess capital and pay down the leverage on their mortgages.