Value Drivers
The Fundamental value of a payment token is derived from the economic activity conducted in tokens, circulating token supply, and token velocity. Velocity is the measure of the number of times a token is spent on average per period.
Value of a Single
This phrase refers to the value of a payment token in a single period.
1$$ 2v = \frac{\text{Economic activity conducted in tokens}} {\text{Circulating token supply} *\text{Token Velocity}} 3$$
Economic activity
This captures the total amount spent on goods and services for a fixed period of time, essentially GDP. Economic Activity depends on:
- Total transaction fees paid in tokens
- Purchases of goods and services paid in tokens
- Maximizing economic activity is different from maximizing value creation in the ecosystem
Circulating token supply
Token supply in circulation depends on:
- Tokens in circulation at launch
- Newley-minted tokens
- Tokens released from vesting
- Tokens taken out of circulation
Drivers of Sonr Token
Inputs and outputs in the financial modeling for the Sonr token.
Model Parameters
- Economic Activity — Payment value
- Subsidy & Rewards Schedule
- Token Release schedule
- Governance fundamental value
- Token velocity
- Price shocks & speculation
- Staking rewards size & schedule
- Token lockup requirements & vesting
- Ecosystem grant size & schedule
Model Outputs
- Token fundamental value
- Token price
- TVL of Sonr staked
- Token circulating supply
- Rewards value
- Grant reward value