# What is VTX?
## **The Problem**
The velocity of money has been a purely theoretical concept in economics. It is measured using the ratio of a country’s economic output (e.g. GDP) to the amount of its base money (e.g. money supply).
Given it is impossible to trace each dollar and count the number of times it is used, the aforementioned velocity calculation is mostly an abstraction.
Money velocity is historically treated as an afterthought. It is not easily measurable. It is historically uncorrelated to inflation. It is frequently assumed to be a constant in economic models. *Interestingly enough, we still do not have a currency focused on network effects by way of monetary velocity.*
## The Solution
An asset backed token that achieves mass distribution through measured velocity.
> *The emergence of token-based money makes practical what was formerly a purely theoretical notion in monetary economics.*
VTX measures velocity as the **frequency at which one unit of currency is used to bring a new member within a given time period**. In other words, it is the number of times one token is spent to acquire new capital per unit of time.
To summarize, VTX offers a dollar backing with measurable velocity, dynamic emissions, and a P2P network accessible through daily auctions. You can read more about how VTX’s money compares to recent attempts [here](https://medium.com/sendvtx/how-to-start-a-new-money-cef687d3a399).
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