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