> For the complete documentation index, see [llms.txt](https://v2tech.noahlabs.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://v2tech.noahlabs.io/3.the-mathematical-model-of-the-twin-token-system-and-value-flow/3.1-xpuls-low-speed-value-and-governance-weight.md).

# 3.1 XPULS: Low Speed Value and Governance Weight

The design of XPULS (base currency) aims to maximize value density while minimizing velocity.

Value density function <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FBi9k49hxVMdtHSG682HX%2Fimage.png?alt=media&amp;token=e9dc9576-ef5b-4cac-bb41-975137166aea" alt="" data-size="line">:

<figure><img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2Fsr6YYR2QtnEooDQWrh6x%2Fimage.png?alt=media&amp;token=a782de1f-a8a0-445f-b4fc-427acbdd9345" alt="" width="164"><figcaption></figcaption></figure>

With its circulation supply shrinking <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FV0EX68uKZlTivEGYhZXR%2Fimage.png?alt=media&amp;token=1b0cd204-b869-46ee-ae87-049544c6a9df" alt="" data-size="line"> through the HMM mechanism and MarketCap rising via K-value growth, XPULS <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FvR2dExVhiyrNy4fdqx09%2Fimage.png?alt=media&amp;token=33da3b12-20c2-41a7-bfb0-4939d6127e37" alt="" data-size="line"> demonstrates strong growth potential.

Circulation speed control:

We quote Fisher's equation of transaction<img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FDxKPAXvxsEuZcpc6e61u%2Fimage.png?alt=media&amp;token=e0f56b57-4ed9-47b4-a89d-20738b460641" alt="" data-size="line">, in which M is the money supply, V is the velocity of circulation, P is the price, and Q is the transaction volume.

Noah 2.0 minimizes the following:<img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2F5il92Z570Z4XXkhlvToV%2Fimage.png?alt=media&amp;token=74483978-fe97-4d77-9fdf-535d96d6896c" alt="" data-size="line">

High exit cost: The turbine escort mechanism imposes Proof of Concept (PoC) requirements on withdrawals.

Long-term pledge incentive: Interstellar Bank's compound interest yield provides a higher <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2Fa5LUOajmja76hZJfNlGN%2Fimage.png?alt=media&amp;token=87dfce3e-f8f5-4bb9-8255-ca6d69c5cd06" alt="" data-size="line">return on long-term pledges (60 days).

Governance Lockout: To participate in CSG governance voting, participants must lock <img src="https://2096417827-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVV3RAUlJy4vEOxonkqUC%2Fuploads%2FidIJi29Fa9dMPOBFWi4d%2Fimage.png?alt=media&amp;token=aec6f659-e81a-4e16-bd8e-f264624dda0e" alt="" data-size="line"> up their XPULS tokens, which will subsequently be removed from circulation.
