Value Drivers

Sonr token operations and economics.

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
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