crypto tokenomics calculator

As mentioned earlier, a crypto token is a denomination of a cryptocurrency or a virtual currency representing a tradable asset or utility on a blockchain network that allows traders to hold it or use it for investment or economic purposes. His seminal work in token economics has led to many successful token economic designs using tools such as agent based modelling and game theory. Tokenomics is an integral aspect of any crypto ecosystem, allowing projects to prevent bad actors, establish trust, and build a strong, long-term ecosystem. We employ a unique data-driven approach to tokenomics, rather than the usual "what is currently popular". This is more suitable for our purpose of evaluating ICOs and tokens. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. Dr Stylianos (Stelios) Kampakis is a data scientist with more than 10 years of experience. - The ability edit and modify the scenarios in order to generate what-if simulations Most of the factors that encompass a cryptos tokenomics can be found on CoinGecko as well as in the projects whitepaper. Here's a handy checklist to get you started. We will start measuring yearly emissions from the moment the Merge is complete. In order to increase the reserves of FRM to ensure the success of the network, we will be merging the supply of FRMx proportional to the current supply of FRM. Tokenomics provides investors with an initial understanding of the value of the project, particularly the supply and demand of the token. Having 2 parachains requires splitting your attention between the development and maintenance of 2 separate networks. Crypto tokenomics is therefore the overall economics of a specific crypto token with regard to the value of the crypto coin and whether its value is likely to rise or fall over time. for latest job openings, Essentials for launching a successful blockchain product, Learn on How to develop an Online Education Platform, NFT Marketplace Platform Development handbook, Crypto Lending Platform Development Guide and Functional Requirements, Development Checklist to build a Crypto Exchange, DeFi Staking Development Guide and Functional Requirements, The Scope of Business Modernisation with NFTs, Effective COVID-19 control through carrier tracking and non-pharmaceutical interventions. The numbers they report are generally called M1, M2 and depending upon the country M3 or M4 as well. Fill in our tokenomics calculator questionnaire, that will give us all the required data to prepare your tokenomics. in an interview with Space Monkeys Crypto Podcast at Polkadot Decoded Buenos Aires, display of how Polkadots canary network, Kusama, was intended to be used. We use this information in order to improve and Our output is not just numbers and charts, but also a 12+ pages of business-focused explanation of the tokenomics. These cookies are used to collect information about how you Given that, we can calculate the price of token as follows. Frankly, it confuses people who are new to the ecosystem. Perhaps a regression or, The model is not fully supporting confidence intervals yet. Aiming to make the ICO community self policing in order to make them capable of solving the problems encountered by ICO domains today. This website stores cookies on your computer. Crypto tokenomics is a blanket term covering the different economic aspects of the token, including maximum supply, transaction fees, minting or burning process, and incentives for token holders. Exchange Liquidity & Market MakingFerrum has done a great job of reaching different types of holders across multiple centralized and decentralized exchanges alike. Vesting refers to the process of locking and releasing tokens after a particular period. The model presented here provides a way to run valuations of ICOs and token economies. All of the early parachain projects were doing it so it seemed like this was the standard approach. Developed by the industry top tokenomics experts and starting at the best possible price - free. The arrival of Ethereum gave a substantial boost to the concept of tokens with cryptocurrencies. 1. The value of a token is determined by market demand and total supply, as well as its utility. Purchase with crypto We accept crypto payments , however they are not fully automated yet. Regarding tokenomics auditing, I am very proud to say that I performed the first audit of its kind for the BankX token, which you can find here. The first step is to collect relevant token data for a cryptocurrency. Rebuild The Chain - pandemic management system built by our team offers a smooth operational platform for the health authorities. Sustainability and token scores for the selected setup, Allocations and token sale charts and descriptions, Token supply mechanics - inflationary/deflationary, 5 optimized tokenomics scenarios to choose from, 12+ pages of detailed tokenomics descriptions, charts and mechanics, based on your configuration, Token value projections using 2 different valuation methodologies. Since the market price of FRMx is $570.88 and the market price of FRM is $0.06635 to calculate the amount of newly converted FRM tokens that the user will receive in exchange for their FRMx tokens, we can plug the variables into the x1 formula: The user will receive approximately 17208.138658628485305 FRM tokens in exchange for their 2 FRMx tokens. Tokenomics by FinDaS. In addition to the upcoming Ferrum Network mainnet, the Merge calls for necessary adjustments to be made. A second way is to find a way to calculate confidence intervals around the price of the tokens. HOW TO GAIN INVESTORS TRUST IN YOUR ICO, STO ? Remember, in order for a network to gain adoption, there needs to be a large enough incentive for early adopters. WebGet the most powerful tokenomics calculator template & simulation available, including future token price predictions and project sustainability scores. We strongly discourage this. We then asked ourselves, WHY have we been planning on opting for the 2 parachain approach ourselves? Designing tokenomics for a cryptocurrency project is essential for creating a successful ecosystem. This whitepaper will explore the essentials for launching a successful blockchain product. The size of the transaction. This model was originally developed for Initial Coin Offerings, which died after the regulation that passed after the crypto crash of 2017-2018. We can likely reserve much of the FRM for a crowdloan on Polkadot in the future. An easy (albeit simplified) way to do this is to simply assume that the holding time does not change drastically between timesteps, and we can simply use the holding time from the previous timestep. Its through tokenomics that a cryptocurrency project can be evaluated based on its real-life performance and not just the performance of crypto exchanges. We can then sum up the fees generated for each month to get the total fees generated in one year: Total fees generated in one year = Fees generated for each month in month 1 + Fees generated for each month. This project was Kilt Protocol. You can also think of the reserves as the uncirculated supply. 2. Also, please make sure to check out the page of the Tesseract Academy, my consultancy which deals with education and services in the both the areas ofAI and blockchain. 5. In the Value optimized scenario of the calculator (for example), will this give the setup with the highest possible token value? If you like the free version, you have the option to unlock the full power of our tokenomics calculator with features such as: This wouldve meant that Team tokens wouldve been fully vested by August of 2025. You can use this tool for a proof-of-concept, however beyond that, we strongly recommend that you get your final tokenomics designed by an expert in the filed. However, Ethereums tokenomics model will likely change as the network transitions to a PoS consensus system. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. This guide includes technical functionalities, a feature list, and more viable information for your project. Therefore, as a beginner in the crypto space, its crucial to study a projects tokenomics, usually drafted in its documentation or white paper, to get a good sense of various tokenomics aspects and determine if it makes sense and is sustainable for the long term. We anticipate quite a lot of volume to be generated from transactions happening in the first days of Crucible being live on Arbitrum so make sure to get in early to take advantage of the early APRs. Tokenomics provides investors with an initial understanding of the value of the project, particularly the supply and demand of the token. To avoid excessive use each user is limited to 1 free tokenomics calculator per 3 months. In particular, after transforming its community into hDAO, its CEO plans to give away 10% of its equity for 100,000,000 HAI tokens.. See an example of a locked free calculator. Get the latest crypto news, updates, and reports by subscribing to our free newsletter. 5. In healthy tokenomics, the tokens circulating supply should gradually increase with time, but the tokens should be released using a strategic mechanism to avoid hurting the tokens value in the long run. - A way to quickly get an automatically generated tokenomics setup, which will still be better than majority of the tokenomics setups out there. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. Tokenomics by FinDaS. Get a tokenomics setup for your project, instantly, picked by our smart algorithms, amongst millions of possible combinations. When evaluating a dApp, one may look to see how many of the tokens are in circulation relative to the total or max supply. In the final section, well explore the fundamentals of token economy design for your blockchain project. Developed by the industry top tokenomics experts and starting at the best possible price - free. WebTokenomics Calculator Tokenomics Calculator by on Sat Sep 8 A well-structured tokenomics is perhaps the most important factor that determines the success of an ICO and the dApp. Below are vital tokenomics factors you should always consider when investing in cryptocurrency. The model is not taking into account speculators or other exogenous shocks to the economy. This is normal, because there is lots of uncertainty as to whether a token is a good investment. We constantly focus In the second section, well explore the essentials for DApp development, including the best practices, methodologies, common vulnerabilities, audit process, and tools. However, if from the beginning, miners were relegated to solely receiving transaction fees as opposed to newly mined BTC, nobody wouldve ever participated in the network. 3% of the Max Supply will be added to the Treasury for this purpose. Most of the suggested valuation models right now involve around the equation of exchange. Only after thoroughly launching the various components of mainnet, tweaking and altering elements based on insights gleaned through our iterative build-measure-feedback process, and then stress testing everything, would we decide to migrate Ferrum Network AND FRM to Polkadot. So how can I get the the extreme versions of the tokenomics? So how do you solve for this? WebData-driven Tokenomics consulting. Then you need to check this out ! Die Welt verndert sich schnell, und die Welt der Kryptographie fhrt den Wandel an. This will also add to Ferrums goals of maintaining a deflationary token economy as each time cFRM is transacted, tokens are burned. We have 2 tokens and this seemed like the logical way to maintain utility for FRMx. How Much Does It Cost To Develop A Web3 Game in 2023, Mobile App Development Trends to Watch in 2023 for E-Commerce, Scikit-Learn 101: Exploring Important Functions, ChatGPT AI Tool for Generating Assignments. One day, when BTCs total supply has been distributed, network validators will only receive rewards in transaction fees. In turn, those projects, have raised over 1BN USD in funding. The recent updates in the NFT domain are quite surprising. WebPurchase your tokenomics calculator with cryptocurrency in a few easy steps at: tokenomics-calculator.com. The model picks this number such as to keep the token sale prices nice and round. Why is the calculator in a spreadsheet? This approach accomplishes something similar to Bitcoins halvening only through PoS mechanisms. In crypto, tokenomics is a collective term used to capture a tokens economics by describing the factors that affect a tokens use and value. Send us a note if you'd like a more thorough cost estimate. However, it does not lend itself well to establishing a presence as a network. Based on your inputs, our AI-powered algorithms will run through millions of possible setups for your tokenomics and finally produce the 5 different tokenomics scenarios optimized for different purposes. Heres the formula to calculate the transaction volume for each month: Transaction volume = 100,000 * (1 + 0.2)^n, where n is the number of months. Hacken, ein Web3-Sicherheitsunternehmen, hat das Hacken HAI Tokenomics-Update verffentlicht. NFTs facilitate the tokenization of art works, real estate, music, digital content, etc., allowing them to be held in digital forms. The parameters set in response to these items will ultimately be contingent on criteria such as current transaction volumes, hardware prices, and FRM valuation and should be subject to alteration by way of approving referenda via governance as a means of adapting to changes in the above criteria. FinDaS - world leading tokenomics experts. We are one of the first companies to provide blockchain development as a service. We can easily assume that at t_0 the price of the token is equal to the sale price during the ICO. FRM has a fantastic distribution for a utility token used to power dApps. Our models are usable out-of-the-box, but you are also able to fully customize all the models output, should you choose to fine-tune any parameter. We can easily assume that at t_0 the price of the token is equal to the sale priceduring the ICO. - Token price projections. Web3 security company Hacken has released the Hacken HAI Tokenomics update on March 1 and its quite striking. WebTokenomics Calculator will help you understand tokenomics better, calculate token metrics and experiment with numbers while modeling the balanced token economy that matches your business model and can help it scale! Layer 1 tokens function to provide access to the blockchains resources including paying for network services such as transaction fees, minting tokens, and paying for smart contracts. Well also look into the process flow of the staking platform, a roadmap, and many more that can help you understand the basics of launching a DeFi stacking platform. Then you need to check this out ! To calculate the fees generated for each month, we need to multiply the transaction volume for that month by the transaction fee: Fees generated for each month = Transaction volume * 0.1. In short, the answer is yes. Exchange Tokens - Exchange tokens can be used to pay for exchange fees on cryptocurrency exchanges where buying, selling and swapping tokens occurs. In the cryptosphere, tokens can be treated as another word for cryptocurrency or crypto assets. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. Well also look into the process flow of the staking platform, a roadmap, and many more that can help you understand the basics of launching a DeFi stacking platform. Market Design refers to the infrastructure needed for transactions, such as an app that allows users to pay membership fees and launch. How to Analyze Crypto Tokenomics. We can just set the parameterk as the proportion of tokens that are not being actively exchanged within a given time window, and hence we can directly estimate velocity (and the holding time). The rest will be distributed to a virtual pool along with the 0.3% of reserves. Token design refers to the actual token that is used for transactions within the market. Fungible tokens essentially have the same value and can be interchanged with one another. This pool will then be distributed with 80% going to QPMs and QPVs and the other 20% going to the Treasury. We can model this using an S-adoption curve and the following equation: Where S(t) is the expectations curve, which can simply modelled as a modified version of a logistic function. Decide on a time window (e.g. We took down our outdated version. There are different classifications of cryptocurrency tokens based on different aspects. The Merge is designed to simplify Ferrums tokenomics, technology, roadmap, and value proposition to new and existing community members. This document contains technical specifications, a feature list, and other useful information for your NFT project. FRM became a deflationary asset as part of the creation of the Ferrum Cross-Chain Token Bridge, which is of course evolving into our multi-chain swapping protocol, MultiSwap. Do you intend to create an NFT marketplace? It wasnt until we realized that the two network approach was not in anyones best interest that it became clear that the Merge WAS in everyones best interest. Miners compete to process a new block of transactions by committing computing power to solve a mathematical puzzle. We are Tokenomics consultants that have been in crypto since 2015 and have worked on 220+ projects. Take Bitcoin for example. What we do know is that we want FRMs reserve to have a half life of around 4.5 years. This is meant to prevent DDoS attacks by making such attacks prohibitively expensive and eliminating the possibility of an attacker generating millions of small transactions to flood and crash the system. Take the relationships between Moonriver/Moonbeam or Karura/Acala or Shiden/Astar for examples. In order to by pass this we just need to use variable values from the previous timestep. Economics is generally the study of scarcity and choice in relation to the use of resources, production, consumption, and transfer of wealth. We believe, we are striding into the next phase of human evolution where technology negates This website stores cookies on your computer. Approved by We are able to absorb the supply by merging the two tokens thus making the valuation of the Ferrum ecosystem dependent on 1 token as opposed to 2, while at the same time, not having to start entirely from scratch. We employ a unique data-driven approach to tokenomics, rather than the usual "what is currently popular". We can see an example of running such the formula below. Likewise, some of the scenarios are similar by definition. As a pioneer in blockchain development services, our team has a proven track record of delivering successful blockchain projects for clients from diverse industries, such as technology startups and government agencies. However, even if you were to opt for the highest Crucible fee and unwrap your cFRM, the APRs are still considerable. Follow the author on Twitter @coingecko. Unfortunately at this point in time, we are unable to offer more specific permission (e.g. they will not be valid for the new project). According to this article from September 2020, year 1 for Ferrum had the largest emission rate at 41.9%. Feel free to get in touch with any thoughts, comments or if you need any code. WebBitcoin went live in January 2009, based on a set of rules - the Bitcoin Protocol - that included a clearly defined supply schedule: New bitcoins are created through Mining. We have done a considerable amount of due diligence on all of the major players and have concluded that Arbitrum is the best fit for the newly minted FRM supply. He is a member of the Royal Statistical Society, honorary research fellow at the UCL Centre for Blockchain Technologies, a data science advisor for London Business School and CEO of The Tesseract Academy. A million dollars a year in revenue from a suite of Blockchain as a Service products simply will not cut it when it comes to maintaining a network and incentivizing behavior on a network. Tokens could serve different functions in a network other than serving the role for trading assets only. Do you intend to create an NFT marketplace? Our models are prescriptive, meaning they tell you what needs your attention and how different aspects of your tokenomics can be improved in order to get the best possible results. Utility Tokens - These are cryptocurrencies representing a value on a blockchain network. You need to use the original file. Tokens are rewards in the ecosystem, and by designing the incentive models, one can influence the participants' behavior. In this whitepaper, we discuss the business modernization opportunities with NFTs. However, more on how the Treasury will be funded by network activity will be discussed in the section surrounding Ferrums Monetary Policy later on in the article. On the quantitative side, we use data on token pricing and adoption for 16 major cryptocurrencies from 2010 to 2018 to discipline our choices of parameters in the model. Analyzing tokenomics is a three-step process. WebOur tokenomics calculator tool accommodates the latest crypto token issuance models for ICO, STO, IEO, IDO, and DeFi pool listings. In the traditional economy, economists monitor the issuance of a currency using official money supply data. As each year passes, the amount of FRM left in the Reserves will be less and less. That means that every 4.5 years, the remaining supply of the reserves will be cut in half. Insbesondere plant der CEO nach der Umwandlung seiner Community in hDAO, 10 % seines Eigenkapitals fr 100.000.000 HAI- Token. In crypto, tokenomics is a collective term used to capture a tokens economics by describing the factors that affect a tokens use and value. The circulating supply is the number of tokens currently in circulation, while the total supply is the total supply of tokens that have ever been created or burned. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. The transaction volume is increasing at a rate of 20% per month. By becoming a network, Ferrum is in some respects starting over. TreasuryThe Treasury is where all network related items and expenses will be sourced from. Last but not least, if you have answered almost all of questionnaire questions, the model tries to keep as close as possible to your input. WebTokenomics Calculator allows you to create and fine-tune a token economy in hours, not weeks. You also need to ensure that a token can appreciate in value, and also to audit the token economy to ensure that there are not any weak points. From a tech, ecosystem and community standpoint, Arbitrum ticks all of the boxes. Investors can use the different aspects of tokenomics, such as market supply, allocation, and more, to determine whether a crypto project is a viable investment. The new dedicated categories are simple. Furthermore, we are thrilled to bring our newly designed tokenomics and monetary policy to the community along with the newly released Whitepaper! Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. Dr. Stylianos Kampakis is the owner and author of The Data Scientist. However, getting started with the tokenomics design can be quite overwhelming. Tokenomics can also be used as a guide for determining cryptocurrency value in the future. The Data Journey: Unlocking The Power of Data Analytics To Drive Business Growth! Access Calculator Now Unlock the power of your token economy and make smarter token modeling decisions, using Tokenomics Calculator. In particular, after transforming its community into hDAO, its CEO plans to give away 10% of its equity for 100,000,000 HAI tokens.. The world is changing rapidly, and the world of crypto is leading the change. The goal of an audit is to ensure that a token economy is robust, and free from any flaws. The scenarios are not supposed to be fundamentally different (except in certain cases). FRMx allows us to have the best of both worlds. Tokens with no apparent utility should be a red flag for avid investors since they have no solid use case. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Also, make sure to check out this article on how toread ICO white papers. Here are some examples to consider:Chainlink tokenomics: The Chainlink ecosystem's token economics uses the LINK ERC-20 token, which rewards data suppliers on the network for their contributions.Axie Infinity tokenomics: Axie Infinity is an engaging play-to-earn game where players collect and breed adorable creatures called Axies, which can be used to participate in battles and earn cryptocurrency. Paid version: Any use or reliance on our content is solely at your own risk and discretion. The utility is one of the most important aspects of any token. This was primarily due to the vesting for the private and public sales. Important Note: Keep in mind that if you want your newly airdropped FRM tokens to qualify toward Presale allocations and/or Governance Committee holding requirements, they will need to be converted to cFRM and staked in Crucible. We want to ensure that the release of FRM is in line with our Monetary Policy and the goals of the network. The current circulating supply of FRM (p1) is added to the change in circulating supply of FRM resulting from the merge (p1), which gives the new circulating supply of FRM after the Merge. This means that transaction fees would need to be extremely high to justify validators wanting to stake on the network, and extremely high transaction fees would in turn discourage users. Ferrum intends to follow this same approach by launching the Ferrum Network on Kusama first. So there are a few items to consider when determining how to charge transaction fees. As of today, upon making this announcement, we have since pulled the liquidity from all FRMx LPs and taken a snapshot of the current prices and valuations of each token to ensure that the amount of newly minted FRM would be precisely proportional to how much FRMx is worth. In this article I will unravel a theory of token valuations I have been working on, which can be used to answer some of the tokenomics questions that I have been asked again and again. monthly). Access Calculator Now Unlock the power of your token economy and make smarter token modeling decisions, using Tokenomics Calculator. A tokens utility refers to its specific use case or the problem it aims to solve. If you have a question related to our tokenomics calculator or about tokenomics that is not answered in our frequently asked questions, feel free to submit it. The expectations curve can be based on real data. They also work best for live projects with actual data. However, we wanted to take it one step further and introduce regular burns through two other mechanisms: We realize that this is a major foundational step in Ferrum reaching its true potential and we have the utmost conviction that this is the best way to ensure the success of the network. An issue we are facing is the interdependency between holding time and token price at a given moment in time. It's crucial to ensure that the token supply is manageable and optimized to prevent an oversupply, which could potentially result in a lower token value. The total token supply is one of the least important metrics for tokenomics. Because Ferrum is going from a product based solution approach to its own network, we had to ensure that the updated tokenomics reflected this and gave the network the best chance at succeeding over many years to come without compromising the resources necessary to support exponential growth. We guide you through the complexities of blockchain, providing you with a seamless experience. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. Through careful breakdown of this data, hidden insights on business processes and activities could be unlocked which can even make them perform better. You will receive an email with instructions for how to confirm your email address in a few minutes. The Economic Design framework consists of three main elements: Market Design, Mechanism Design, and Token Design. Value optimized (best token value) A tokens value can be indicated by the fully diluted market cap, which is essentially a product of the tokens maximum supply and the current market. This will also have the positive effect of moving FRM into the top 1000 of tokens on CMC and Coingecko, which comes with a host of marketing benefits. Most importantly however, we feel that the newly designed tokenomics,monetary policy, and Whitepaper will help set Ferrum Network up for success as we push forward toward mainnet and our vision of Interoperability 2.0! Unfortunately, our crypto payments are not fully automated, so it takes a little bit longer to be processed. In the free version - none. Additionally, since we always optimize for sustainability first, this sometimes limits the variability of scenarios. MarbleDAO is a community-driven project, built on Juno, that enables voting, staking, lending, and NFT trading for the entire DeFi ecosystem. For a long time, we were quite certain that the 2 parachain approach was the way we were going to go. All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (Site) is for your general information only, procured from third party sources.

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