crypto tokenomics calculator crypto tokenomics calculator

We are Tokenomics consultants that have been in crypto since 2015 and have worked on 220+ projects. Tokenomics= Token + Economics Tokenomics is simply the quality of a token that creates demand for that token from investors. 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. This is still a work in progress, with some issues remaining to be addressed. Take the relationships between Moonriver/Moonbeam or Karura/Acala or Shiden/Astar for examples. These tokens are integrated into Layer 1 blockchains via smart contract technology. In this article, we explain more about how the equation of exchange can be used in order to study different scenarios: from appreciation to depreciation. Optimizing for token value is usually aligned with what investors want as well. Of course, the biggest consideration that we had when determining whether or not this was the best path forward, was the community. First we take those 5 steps. Set the total number of tokens M. Set the expectations factor. Ethereums PoS issuance currently stands at approximately 4.5% with 2 Ether per block. To find out how many FRM you have been airdropped in exchange for the amount of FRMx and cFRMx you were either holding or staking, be sure to check out the Merge Calculator! Utility Tokens - These are cryptocurrencies representing a value on a blockchain network. Do you intend to create an NFT marketplace? We employ a unique data-driven approach to tokenomics, rather than the usual "what is currently popular". Such factors include the tokens creation and distribution, its supply and demand, incentive mechanisms, as well as its burn schedules. While Ferrums main utilities have been limited to BSC thus far, Ferrum plans to take its products multichain and create a multichain token standard via the Ferrum mainnet. Cryptocurrencies have become increasingly popular in recent years, attracting investors and traders looking to Read more, Wanna become a data scientist within 3 months, and get a guaranteed job? Hopefully over time, the token prices will appreciate due to increased enthusiasm from buyers in anticipation of future success or usage metrics fulfilling their potential promise as stated on paper by the design team. Vesting ensures the team has a financial interest in continuing to grow the project, which in turn establishes faith in the project from investors. We are interested in creating forecasts of the value of a token. Tokenomics in crypto refers to the economic principles and design of token-based systems in the cryptocurrency industry, such as blockchain networks, initial coin offerings (ICOs), and decentralized applications (dApps). Why is the calculator in a spreadsheet? Given that, we can calculate the price of token as follows. No content on our Site is meant to be a solicitation or offer. The team at Ferrum has been focusing their energy entirely on building out their interoperable L1 network. Currently, Ferrum faces this same problem with our two token system. Although, at the time, it seemed like a daunting hurdle that would be difficult to overcome, what we found has led us to possibly the single greatest blessing to happen for Ferrum in some time. For simplicity, we can assume this is stable over the full time window. Projects with well-designed tokenomics are more likely to succeed in the long term since investors can be incentivized by buying and holding the coins. WebOur tokenomics calculator tool accommodates the latest crypto token issuance models for ICO, STO, IEO, IDO, and DeFi pool listings. This guide includes technical functionalities, a feature list, and more viable information for your project. Tokenomics provides investors with an initial understanding of the value of the project, particularly the supply and demand of the token. 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. Die Welt verndert sich schnell, und die Welt der Kryptographie fhrt den Wandel an. The model presented here provides a way to run valuations of ICOs and token economies. A proposed way is to assume that users will not accept a worse price than the price they bought in for a period T. This means, that the token value will not drop below the ICO price for some period, but will eventually converge to the true valuation. How much does it cost to design a tokenomics for your project. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. When creating a token, it is important to consider its design, financial incentives, and governance policies. Fungible Tokens - Fungible tokens can be interchanged with one another of the same kind. Second they optimize for the scenario target. Without vesting, a single or few entities with control of large proportions of the projects token can cause price instability and pose risks to the tokens ecosystem. In particular, after transforming its community into hDAO, its CEO plans to give away 10% of its equity for 100,000,000 HAI tokens.. From a tech, ecosystem and community standpoint, Arbitrum ticks all of the boxes. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. We'll also look at the lending platform's process flow, a roadmap, and other topics that will help you grasp the fundamentals of building a DeFi lending platform. So how can I get the the extreme versions of the tokenomics? interact with our website and allow us to remember you. This prompted us to dive deeper into the pros and cons of the 2 parachain approach. A crypto token is a unit of digital currency (cryptocurrency) that can be used as an asset, a means of payment, or to represent a particular use case on a blockchain network. Numerous aspects, including token supply, utility, distribution, incentive mechanism, and development team expertise, determine Tokenomics design costs. Of course, you can simply stake the cFRM rewards that you generate in Crucible! 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. By Eloisa Marchesoni Audits should be tokenized, so maybe the ones done badly (like Read more, Wanna become a data scientist within 3 months, and get a guaranteed job? monthly). 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. Tokenomics by FinDaS. Tokenomics describes two main things in regards to a crypto economy: Utility of the tokens in regards to supply and demand. 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. We'll also look at the lending platform's process flow, a roadmap, and other topics that will help you grasp the fundamentals of building a DeFi lending platform. Unlike most similar tools we offer a fully free version of the model, so that you can decide weather you like it or not. When evaluating a network on the other hand, especially one that has not garnered the attention of builders, users, and validators, one will want to understand how they intend on attracting such participants. Tokens are continually distributed by block rewards. The larger the transaction, the more resources are needed to store and process it. In the traditional economy, economists monitor the issuance of a currency using official money supply data. If you use the full version of the model and decide that you want the service of a tokenomics expert, our partners at FinDaS will do this at a discount. Theres an important distinction to be made when studying the way that dApps function compared to newly established networks. Imagine what the valuation of their Polkadot chains would be if their community members didnt have to decide between them and their Kusama counterparts. Unlike Bitcoin, Ethereum is inflationary and doesnt have a maximum supply cap, meaning that ETH supply continues to grow with growth in the network. monthly). This model is not a substitute for proper tokenomics design and modelling, performed by a dedicated tokenomics advisor. This can give them an idea as to the inflation that the token may be subjected to in the future and how evenly tokens are distributed amongst the community. If you remember earlier in the article there was a section regarding retaining enough reserve tokens to ensure the success of the network. Read more, The Data Scientist, In terms of CEXs, were happy with being listed on Kucoin, Gate.io, and Ascendex. Here are some of the most crucial elements to consider while analyzing the tokenomics of a cryptocurrency. Developed by the industry top tokenomics experts and starting at the best possible price - free. The total number of tokens issued is a known parameter. 5. Since Ferrum is evolving from a dApp based project to a network that will service a multitude of dApps, it has become abundantly clear that the FRM and FRMx tokenomics need to evolve as well in order to support the success of the network. We will simply use the term ICO here for reasons of simplicity, and to pay tribute to the original piece of research. Not consenting or withdrawing consent, may adversely affect certain features and functions. Track your favorite coin easily with CoinGecko , Password must contain at least 8 characters including 1 uppercase letter, 1 lowercase letter, 1 number, and 1 special character. Agent based simulators - Those are great simulation tools, however they are very tedious to configure and assume you have quite a bit of tokenomics knowledge yourself. His seminal work in token economics has led to many successful token economic designs using tools such as agent based modelling and game theory. The circulating supply of FRMx is extremely low relative to its total supply. The lack of regulation in the crypto space owing to decentralization makes tokenomics a vital aspect of any cryptocurrency project. WebGet the most powerful tokenomics calculator template & simulation available, including future token price predictions and project sustainability scores. How to Analyze Crypto Tokenomics. To maintain the tokens value and achieve a stable supply, the platform recently implemented a deflationary mechanism where 100-120 million ETH were burned. Watches Markets. 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. For this, we recommend our partners at FinDaS.org who are world-leading tokenomics experts and helped us design this tokenomics calculator. The foundations etc. Learn more: How to design crypto tokenomics? The non-circulating supply of FRM (s1) is added to the change in non-circulating supply of FRM resulting from the Merge (s1), which gives the new non-circulating supply of FRM after the Merge. By becoming a network, Ferrum is in some respects starting over. Firstly, it is simply a mashup of two words token and economics. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. There are different classifications of cryptocurrency tokens based on different aspects. 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. For this, we recommend our partners at FinDaS.org who are world-leading tokenomics experts and helped us build this tokenomics calculator. For example, a well-designed tokenomics system can help ensure sufficient demand for a cryptocurrency, which can drive its value and support its long-term stability. Tokenomics can help investors understand whether a crypto project will address future challenges and stay relevant. Estimating velocity can be tricky. It delivers location-based data, citizens data, healthcare facility data and real-time insights on pandemic spread, infected persons route maps and possible locations in the economy for an outbreak. To prove it, no more FRM will be released until mainnet is live. Their prescriptive qualities are aimed at optimizing your product and less so the actual tokenomics. This way we ensure that our models are accessible to everyone. Even while they do that, they do not ignore everything else, instead they try keep most tokenomics parameters within reasonable ranges. In the final section, well explore the fundamentals of token economy design for your blockchain project. The team is in it for the long haul and have agreed to increase the duration of the Team token vesting period significantly. Web3 security company Hacken has released the Hacken HAI Tokenomics update on March 1 and its quite striking. While ICOs have now evolved into IEOs (Initial Exchange Offerings), and IDOs (initial DEX offerings), the lessons in that article are still relevant. In the final section, well explore the fundamentals of token economy design for your blockchain project. Layer 2 tokens can be new tokens or more complex dApps project tokens. How many tokens are released via the Merge will determine how many tokens will be released every expansion period from the reserves (aka the uncirculated supply). The new dedicated categories are simple. Set the expectations factor. Here's a step-by-step checklist to get your e-Learning project off the ground. I would like to subscribe to CoinGecko's daily newsletter. Since then, the emissions rate for years 3 and 4 of 7.45% has stayed consistent. WebTokenomics Calculator allows you to create and fine-tune a token economy in hours, not weeks. Perhaps FRM will serve as a sort of routing token for MultiSwap in the future. MarbleDAO is a community-driven project, built on Juno, that enables voting, staking, lending, and NFT trading for the entire DeFi ecosystem. CoinGecko recently added a Fully Diluted Valuation (FDV) toggle and Coin Comparison Page allowing seamless comparison of MC and FDV between different cryptocurrencies. The numbers they report are generally called M1, M2 and depending upon the country M3 or M4 as well. That is, the velocity is the inverse of the proportion of money that is held in cash. Moreover the challenges faced while adopting AI in to a business is also described here. 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. It includes everything about the mechanics of how the asset works, as well as the psychological or behavioral forces that could affect its value long term. on innovations to make this future closer to us. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. Up until now, Ferrum has taken a product oriented approach to the way we ran the business. Designing tokenomics for a cryptocurrency project is essential for creating a successful ecosystem. WebOur tokenomics calculator tool accommodates the latest crypto token issuance models for ICO, STO, IEO, IDO, and DeFi pool listings. 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. However, this is something to be researched and for now we can go with this simplification. This is more suitable for our purpose of evaluating ICOs and tokens. 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. See an example of a locked free calculator. All of our models optimize for tokenomics sustainability first and foremost. What is tokenomics and why is it important? Since cFRM will now exist on Arbitrum, that also means that Crucible is also now compatible with Arbitrum! Imagine where Ferrum could go if people didnt have to decide between two tokens. only specific person access). This includes but is not limited to areas such as Exchange Liquidity & Market Making, Bridge Liquidity, Ecosystem, and Mainnet and Parachain Fund. Payment Tokens - Payment tokens are used to facilitate transactions involving buying and selling goods and services on digital platforms without an intermediary. Tokenomics is generally a broad term describing the demand and supply characteristics of cryptocurrency. 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. Given that, we can calculate the price of token as follows. The arrival of Ethereum gave a substantial boost to the concept of tokens with cryptocurrencies. model each individual transaction). What this model is not taking into account is: User expectations are not easy to model. However, it is a good start and a very convenient model to use. Layer 2 Tokens - Layer 2 tokens are crypto tokens without their own native blockchain networks. Most of the suggested valuation models right now involve around the equation of exchange. 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. Value optimized (best token value) We have 100,000 transactions per day initially. This will reduce both potential sell pressure and emissions of FRM upon the Merge. One way is to include a probabilistic or statistical model of the S-curve above. In the figure above we have a hypothetical ICO that is selling at $0.25. Crypto fundraising for decentralized finance projects rose by 190% in 2022, while funding for centralized finance shrank 73%. That's what tokenomics is all about. Unfortunately, we cannot offer model interpretation services or support. 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. Well-performing crypto projects have their ecosystem built around their tokens. However, it does not lend itself well to establishing a presence as a network. Die Welt verndert sich schnell, und die Welt der Kryptographie fhrt den Wandel an. We strongly believe that these updated tokenomics put us in a position to achieve our long term vision and goals. In this whitepaper, we discuss the business modernization opportunities with NFTs. No. This is normal, because there is lots of uncertainty as to whether a token is a good investment. Year 2 saw a drastically reduced emission rate of 7.45%. There are more advanced tools than spreadsheets and this is why the file which you get is not standalone. In this whitepaper, weve rounded up a checklist for the basics of launching a DeFi staking platform. A tokens utility refers to its specific use case or the problem it aims to solve. 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. The world is changing rapidly, and the world of crypto is leading the change. Beyond that, constantly seeking out ways to add utility for FRMx in order to maintain its value, is to ignore value in the form of utility that couldve been added to FRM. The free version - anyone who has the link can view the file. It pulls data from our back end, in order for us to be able to carry out all needed calculations. You can determine the ideal token allocation for your project by evaluating various factors such as the business plan, target market, projected market penetration, and token utility. It encompasses everything about the mechanics of the crypto coin, including the tokens supply, the mechanics of how the cryptocurrency functions, as well as the behavioral and psychological forces that may affect its long-term value. Drop us a word to get started with our tokenomics calculator tool. These tokens will be used for major future grant programs, hackathons, bug bounties, incentivized testnets, and other Ferrum-ecosystem growth oriented initiatives. NFTs facilitate the tokenization of art works, real estate, music, digital content, etc., allowing them to be held in digital forms. See an example of an unlocked calculator. However, Ethereums tokenomics model will likely change as the network transitions to a PoS consensus system. For more information on Presale holding requirements, check out this link: https://ferrum.network/fas-incubator/. Note: This would mean that at the very least, 2% of the uncirculated supply would automatically be distributed to cFRM stakers as each time block rewards are distributed tokens from that expansion period will be subjected to the 2% transfer fee. Factors of tokenomics are basically the different aspects of a crypto token that affect its value. So there are a few items to consider when determining how to charge transaction fees. In this whitepaper, weve rounded up a checklist for the basics of launching a DeFi staking platform. This is still work-in-progress and it is covered in another post. Hold it without staking to take advantage of cFRM/FRM arbitrage opportunities, How Quantum Portal Miners (QPMs) and Quantum Portal Validators (QPVs) will be rewarded for ensuring the security, efficiency and overall effectiveness of the network, QPMs and QPVs will be incentivized to grow their stake in the network, How the distribution of these tokens for the aforementioned items can sustain equilibrium as it pertains to emissions. Moreover the challenges faced while adopting AI in to a business is also described here. A second way is to find a way to calculate confidence intervals around the price of the tokens. And we can do this while still honoring our commitments to existing stakeholders and creating additional utilities for the FRM token. You will receive an email with instructions for how to confirm your email address in a few minutes. Take Bitcoin for example. The model picks this number such as to keep the token sale prices nice and round. The right-hand side is the total level of nominal expenditures, that is, average price of a good or a service, times the quantity of goods or services. Hacken, a Web3 security company, has released the Hacken HAI Tokenomics update. Send us a note if you'd like a more thorough cost estimate. We are giving you the next best thing, for a fraction of the cost. It provides a new way to estimate holding time/velocity, as the proportion of tokens that are being held as a store of value.