The number of shares of flow that have value is:
S_selling
The number of shares that lack value is:
S - S_selling
Let me repeat what I said earlier for more nuance:
"The shares of flow have no value themselves until they are sold, except in terms of the context of using shares of flow as their own medium of exchange (i.e. for their own merits)." The merits are obtained because when these shares are traded for currency, they have value. However, when shares of flow are not being traded for other currencies, they do not have any value in terms of other currencies except through indirect actions via the buyer and seller market. Only during the action of direct trade between currencies is the value of each stock of flow well-defined with respect to other currencies.
The value of each share of S_selling is:
F / S_selling
Assuming that F is constant.
If F is not constant, then we can still calculate the value obtained by S_selling during the present block.
(F / F_period) / (S_selling / S_period)
The most important difference between the
proposed crypto-currency and any other crypto-currency is that other crypto-currencies derive their value from the deposits of mostly fiat currency. Think about how a person actually gets BitCoins. One likely forgoes the possession of some cash, and now that cash is (or once was) in the hands of an exchange or miner. Depending on the market cap of BitCoins, there is a certain of amount of cash that represents it. The exchanges may or may not have this cash. Whether it's the exchanges or just a miner, these people who sell their BitCoins for cash do
not necessarily maintain possession of the market cap. In this sense, BitCoin operates as a fractional-reserve system, to the extent that people who sell BitCoins at a profit decide to spend it into the general economy! Even if more people obtain BitCoins, increasing the value of BitCoin, there will always be this shortfall between market cap and actual cash "backing" BitCoin's market cap, when people decide to sell some BitCoins. This makes the market cap of BitCoins
fictitious (to the extent that the non-cryptocurrency profits from running the BitCoin system are spent), and it exaggerates the amount of the potential for any
real liquidity that exists in the BitCoin system.
This problem is completely eliminated under my proposed crypto-currency system. All that is required is a transfer of fiat monies from buyers of shares of flow to sellers of shares of flow. The
flow backs up the market cap,
not deposits. So if it were desired to convert the shares of flow into other currency, this can be done
without the possibility of a "run on the bank"-type event.