Some/most of my scenarios are very similar, why is that? Tokens could serve different functions in a network other than serving the role for trading assets only. Analyzing tokenomics is a three-step process. 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. Vitalik Buterin flipped velocity and the price giving us the following equation: Where C is the price or the cost of a token, defined as C=1/P, and H is the average holding time, defined as H=1/V. The world is changing rapidly, and the world of crypto is leading the change. 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. The utility is one of the most important aspects of any token. Tokenomics You will receive an email with instructions for how to confirm your email address in a few minutes. Here's a step-by-step checklist to get your e-Learning project off the ground. Non-Fungible Tokens (NFTs) - NFTs are a unique form of cryptocurrency tokens which have no similar value. It's important to strike a balance between creating a sufficient supply of tokens for potential customers to acquire and ensuring that the token's value is optimized based on its intended utility. Mainnet and Parachain FundTo ensure the successful launch and evolution of the Ferrum Network, we want to remain open to secondary mainnet or node raises and/or parachain crowdloans. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. In August 2020, the team decided to extend the lockup to 3 years and increase the release schedule from 24 to 36 months as well. In order to by pass this we just need to use variable values from the previous timestep. From a tech, ecosystem and community standpoint, Arbitrum ticks all of the boxes. Market Design refers to the infrastructure needed for transactions, such as an app that allows users to pay membership fees and launch. Hacken, a Web3 security company, has released the Hacken HAI Tokenomics update. The arrival of Ethereum gave a substantial boost to the concept of tokens with cryptocurrencies. Analyzing tokenomics is a three-step process. The numbers they report are generally called M1, M2 and depending upon the country M3 or M4 as well. A minimum payable fee. The goal of an audit is to ensure that a token economy is robust, and free from any flaws. This website stores cookies on your computer. Remember, in order for a network to gain adoption, there needs to be a large enough incentive for early adopters. To avoid excessive use each user is limited to 1 free tokenomics calculator per 3 months. Firstly, it is simply a mashup of two words token and economics. This whitepaper will explore the essentials for launching a successful blockchain product. In the first section, well explore how to choose the right blockchain for developing your DApp. 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. customize your browsing experience and for analytics and metrics about our visitors both on this website and This includes but is not limited to areas such as Exchange Liquidity & Market Making, Bridge Liquidity, Ecosystem, and Mainnet and Parachain Fund. To account for this, we need to calculate the transaction volume for each month and then sum up the fees generated for each month. In turn, those projects, have raised over 1BN USD in funding. Likewise, some of the scenarios are similar by definition. For example, your application may only permit authorized users to pay subscription fees through a secure and verified process. When we have M, T and C calculating H (or V) is trivial. We are Tokenomics consultants that have been in crypto since 2015 and have worked on 220+ projects. 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. Besides, a crypto project may alter its tokenomics in the future based on the networks growth and maturity as well as current industry trends. Also, make sure to check out this article on how toread ICO white papers. While ICOs have now evolved into IEOs (Initial Exchange Offerings), and IDOs (initial DEX offerings), the lessons in that article are still relevant. 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. These cookies are used to collect information about how you interact with our website and allow us to remember you. Hacken, a Web3 security company, has released the Hacken HAI Tokenomics update. The tokenomics model depends a lot on the tokens represented in form of cryptocurrencies. This yearly rate of emissions will reduce itself as the supply of the reserve fades. The lack of regulation in the crypto space owing to decentralization makes tokenomics a vital aspect of any cryptocurrency project. Market capitalization (or "market cap") is the sum of total funds invested in the project. 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 wouldve meant that Team tokens wouldve been fully vested by August of 2025. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. - A way to quickly get an automatically generated tokenomics setup, which will still be better than majority of the tokenomics setups out there. 1. Such factors include the tokens creation and distribution, its supply and demand, incentive mechanisms, as well as its burn schedules. Bridge pools would need to exist on networks that MultiSwap is integrated with. This presents us with an incredible opportunity. Crypto Tokenomics Tokenomics 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. Convert their FRM to cFRM and stake it in Crucible to earn sustainable APRs. Decide on a time window (e.g. There is also a great framework fortokenomicswhich you can find on that page. 4. 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. We furthered this agenda with the advent of our latest DeFi 2.0 product, Crucible, which burns between 0.10.4% of all transacted volume of the wrapped reflection version of FRM, cFRM. Critically, this means we can focus all of our time, energy and resources on a single network rather than trying to juggle two networks and two tokens., Nick Odio, Chief Growth Officer at Ferrum Network. Tokenomics HOW TO GAIN INVESTORS TRUST IN YOUR ICO, STO ? We provide you with not one, not two, but five different complete tokenomics setups to choose from (optimized for different goals) all tailored to your business. The ensuing release schedule was spread out over 3 years. Do you want to learn how to build an NFT marketplace platform from the ground up? Additionally, tokenomics can help to identify potential risks and challenges and to design effective governance and monetary policies that can help to mitigate these risks and ensure the long-term success of the token-based system. Thats an extra 2 years that Ferrum has added to the vesting for their own tokens. 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. 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. crypto That's what tokenomics is all about. We can easily assume that at t_0 the price of the token is equal to the sale price during the ICO. We bring to you the new and improved tokenomics calculator tool. Up until now, Ferrum has taken a product oriented approach to the way we ran the business. Perhaps a regression or, The model is not fully supporting confidence intervals yet. Note: Most Web3 teams have between 6 and 12-month cliffs and release schedules lasting from 12 to 36 months. The Decision Makers Handbook to Data Science, equation we derive that the price of a token, model presented here provides a way to run valuations of ICOs, I mentor executives, entrepreneurs and students on data science, AI and blockchain. Tokenomics Unfortunately not. As NFT tokens are being sold for millions, and images, emojis, etc being auctioned at record value make one wonder what is happening in this sector. We are interested in creating forecasts of the value of a token. they will not be valid for the new project). We then asked ourselves, WHY have we been planning on opting for the 2 parachain approach ourselves? These tokens have been effectively removed from the Total Supply! We have reserved 4% of the Max Supply to the ECOP category to ensure that Ferrum keeps attracting and retaining the best talent. For project creators, tokenomics can make or break a project and therefore must be well formulated. The world is changing rapidly, and the world of crypto is leading the change. - The ability edit and modify the scenarios in order to generate what-if simulations This guide includes technical functionalities, a feature list, and more viable information for your project. Ferrum intends to follow this same approach by launching the Ferrum Network on Kusama first. I don't like the total token supply that the model suggests. Hacks Biology. There are a multitude of other reasons as to why we think its wise to focus on a single network. Can I get support for interpreting/fine-tuning the model's results? Ferrum now has a 48-month cliff followed by a linear release schedule lasting 48 months for a whopping total of 96 months of vesting! Web3 security company Hacken has released the Hacken HAI Tokenomics update on March 1 and its quite striking. This is still a work in progress, with some issues remaining to be addressed. 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! Given that, we can calculate the price of token as follows. As it turned out, the answer was right in front of us the whole time in FRMx. Access Calculator Now Unlock the power of your token economy and make smarter token modeling decisions, using Tokenomics Calculator. other media. tokenomics calculator Aiming to make the ICO community self policing in order to make them capable of solving the problems encountered by ICO domains today. Ethereums PoS issuance currently stands at approximately 4.5% with 2 Ether per block. 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. This means that QPMs and QPVs will be less inclined to sell their rewards as they would incur a fee. Due to the necessity to boost the engagement on the soon-to-be newly launched network, there will be a slight uptick in emissions during the first year of the networks lifespan. In order to provide sufficient attention to each network, we would need to expend double the resources or risk seeing one network become abandoned or neglected. There are certain limitations however: This project was Kilt Protocol. However, as time went on we started to realize that the 2 parachain approach was becoming less and less popular to newer projects building in the Dotsama ecosystem. Tokenomics has become a popular term in the last few years to describe the math and incentives governing crypto assets. In this whitepaper, weve rounded up a checklist for the basics of launching a DeFi staking platform. There are more advanced tools than spreadsheets and this is why the file which you get is not standalone. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. If every expansion period, a total of 0.3% of those tokens are released, that means that the supply of the reserves will reach 132,500,000 in just under 4.5 years. 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. However, what we know in advance is is only M and T. Fortunately, there is an improved version of the equation of exchange: the Cambridge equation. Tokenomics= Token + Economics Tokenomics is simply the quality of a token that creates demand for that token from investors. CoinGecko recently added a Fully Diluted Valuation (FDV) toggle and Coin Comparison Page allowing seamless comparison of MC and FDV between different cryptocurrencies. 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. Tokenomics Miners compete to process a new block of transactions by committing computing power to solve a mathematical puzzle. 5. Introducing The Merge: Setting Ferrum Network up For Success The scenarios are not supposed to be fundamentally different (except in certain cases). In crypto, tokenomics is a collective term used to capture a tokens economics by describing the factors that affect a tokens use and value. p is the total supply of FRM after the merge, p1 is the current circulating supply of FRM, p1 is the change in circulating supply of FRM resulting from the merge, s1 is the change in non-circulating supply of FRM resulting from the merge, x1 is the amount of newly converted FRM tokens that the user will receive in exchange for their FRMx tokens, ua is the amount of FRMx or cFRMx tokens that the user currently holds, m is the market price of FRMx at the time of the snapshot, n is the market price of FRM at the time of the snapshot. - All 5 tokenomics scenarios unlocked Access Calculator Now Unlock the power of your token economy and make smarter token modeling decisions, using Tokenomics Calculator. For a long time, we were quite certain that the 2 parachain approach was the way we were going to go. crypto A tokens utility refers to its specific use case or the problem it aims to solve. Layer 2 Tokens - Layer 2 tokens are crypto tokens without their own native blockchain networks. This includes total supply, circulating supply, and maximum supply. Value optimized (best token value) 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. To ensure that projects and developers looking to build on Ferrum Network will be incentivized to do so in the coming years, there will need to be tokens allocated from the Treasury to said projects. crypto Exchange Liquidity & Market MakingFerrum has done a great job of reaching different types of holders across multiple centralized and decentralized exchanges alike. To find out more about the cookies we use, see our Privacy Policy. The inputs which produce most of the variability are the ones that have a token sale, have a medium to high risk tolerance, have answered 60-70% of the questions, but still have left some things for the model to decide. As NFT tokens are being sold for millions, and images, emojis, etc being auctioned at record value make one wonder what is happening in this sector. Tokenomics Sale optimized (lowest number of tokens given away during the token sale, with decent token value, valid only if your token has a sale). 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. And even if one of these networks ends up receiving less attention than the other, it still serves as a drag on the one who is being prioritized. Dr Stylianos (Stelios) Kampakis is a data scientist with more than 10 years of experience. 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). 3. Set the total number of tokens M. Set the expectations factor. These tokens are integrated into Layer 1 blockchains via smart contract technology. This guide includes technical functionalities, a feature list, and more viable information for your project. Miners compete to process a new block of transactions by committing computing power to solve a mathematical puzzle. We employ a unique data-driven approach to tokenomics, rather than the usual "what is currently popular". As each year passes, the amount of FRM left in the Reserves will be less and less. Here's a handy checklist to get you started. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. 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. 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. Choosing how much transaction fees are to cost is another important consideration for any network. Yes, you can! We constantly focus Tokenomics Token valuations are hard, and many token offerings can fail. Additionally, since we always optimize for sustainability first, this sometimes limits the variability of scenarios. Tokenomics provides investors with an initial understanding of the value of the project, particularly the supply and demand of the token. Fill in our tokenomics calculator questionnaire, that will give us all the required data to prepare your tokenomics. 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. Which tokenomics variables can I adjust in the caclulator? We guide you through the complexities of blockchain, providing you with a seamless experience. 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. To gain a deeper understanding of tokenomics calculation, read more in our blog on how to calculate tokenomics. These tokens will be used for major future grant programs, hackathons, bug bounties, incentivized testnets, and other Ferrum-ecosystem growth oriented initiatives. Countdown to Merge Staking and learn more here! These cookies are used to collect information about how you interact with our website and allow us to remember you. Youve probably heard of the term tokenomics which has become quite popular in the crypto space in recent years. The public sale is open to anyone who wants to participate; the community allocations are ecosystem funding that goes back to the community; the insiders are the people who have a vested interest in the success of the company, in return they receive a lot of the company's share. As soon as you make the payment, please also fill in the short form, so that we can be sure that the payment is coming from you. Unfortunately at this point in time, we are unable to offer more specific permission (e.g. Treasury tokens will remain in multi-sig safes and will be released via governance mechanisms as we continue to iron out a state of the art approach towards governance. As seen in the infographic above: There are four main categories of initial asset allocation: insiders (core team, investors & company). 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. WebOur tokenomics calculator tool accommodates the latest crypto token issuance models for ICO, STO, IEO, IDO, and DeFi pool listings. Tokenomics can help investors understand whether a crypto project will address future challenges and stay relevant. In the cryptosphere, tokens can be treated as another word for cryptocurrency or crypto assets. 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. tokenomics You can see how to make the payment here. The numbers they report are generally called M1, M2 and depending upon the country M3 or M4 as well. FinDaS - world leading tokenomics experts. Tokenomics Calculator 1. - The best possible value for your money. As Web3 moves towards a more As technology advances, it may help you outpace your competition and grow your firm. WebData-driven Tokenomics consulting. Imagine what the valuation of their Polkadot chains would be if their community members didnt have to decide between them and their Kusama counterparts. Tokens could serve different functions in a network other than serving the role for trading assets only. Token distribution should ideally be diversified to ensure that no single group has too much power and that the project can remain decentralized and neutral over time. It is important to remember that this is a merge of two assets within the same ecosystem as opposed to the inflation of the overall value of the token economy. Get the most powerful tokenomics calculator template & simulation available, including future token price predictions and project sustainability scores. The model picks this number such as to keep the token sale prices nice and round. only specific person access). Factors of tokenomics are basically the different aspects of a crypto token that affect its value. The free version - anyone who has the link can view the file. We calibrate the model so that the initial adoption patterns match It requires double the buy pressure to move the price of one token. They also work best for live projects with actual data. Projects with token vesting rarely experience inflation, plus it ensures the long-term commitment to the project team members. One way is to include a probabilistic or statistical model of the S-curve above. 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. We employ a unique data-driven approach to tokenomics, rather than the usual "what is currently popular". Paid version: AI FOR BUSINESS TRANSFORMATION: How AI can make your business 2X more profitable. Set the expectations factor. Join my exclusive data science program and get mentored personally by me. Interested to stay up-to-date with cryptocurrencies? This makes calculations conceptually easier for an ICO. In particular, after transforming its community into hDAO, its CEO plans to give away 10% of its equity for 100,000,000 HAI tokens.. We are giving you the next best thing, for a fraction of the cost. Tokenomics provides investors with an initial understanding of the value of the project, particularly the supply and demand of the token. The size of the transaction. The first step is to collect relevant token data for a cryptocurrency. IT'S FREE! Assuming that the system is in equilibrium and money demand equals money supply then this turns into: So, the velocity is equal to 1/k. Reads Books. 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. Before you make a payment, please make sure you have filled in our tokenomics calculator questionnaire and you have received an email with a link to the calculator. 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. 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 particular, after transforming its community into hDAO, the company plans to give away 10% of its equity for 100,000,000 HAI tokens. THIS is where FRMx comes in. If you remember earlier in the article there was a section regarding retaining enough reserve tokens to ensure the success of the network. Note: The APRs do not account for any sort of Crucible transaction fee. The model presented here provides a way to run valuations of ICOs and token economies. This document contains technical specifications, a feature list, and other useful information for your NFT project. The total number of tokens issued is a known parameter. We have 2 tokens and this seemed like the logical way to maintain utility for FRMx. Layer 2 tokens can be new tokens or more complex dApps project tokens. Payment Tokens - Payment tokens are used to facilitate transactions involving buying and selling goods and services on digital platforms without an intermediary. We strongly discourage this. Tokenomics Calculator The value of a token is determined by market demand and total supply, as well as its utility. Tokenomics is an indispensable part of an ICO, or what these terms is more generally referred as a token offering (this term can encapsulate Initial DEX offerings, IDOS, or other forms of token offerings). 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. Such factors include the tokens creation and distribution, its supply and demand, incentive mechanisms, as well as its burn schedules. Tokenomics can also help to create alignment between stakeholders, such as token holders, developers, and users, and to ensure that the token-based system can support its growth and development over time. 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. Our models are different, by combining the best of both worlds, and then some: We understand that you are not a tokenomics expert and we think that you do not need to be. 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. Such factors include the tokens creation and distribution, its supply and demand, incentive mechanisms, as well as its burn schedules. 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. Frankly, it confuses people who are new to the ecosystem. NFTs facilitate the tokenization of art works, real estate, music, digital content, etc., allowing them to be held in digital forms. TheCambridge equation treats money as a store of value. FRMx allows us to have the best of both worlds. There are some questionnaire inputs which severely limit what the model can produce, for example: very low risk tolerance or having no token sale. The max supply is the maximum number of tokens that can ever be generated. Set an average price P in $ for the service provided by the company. MarbleDAO is a community-driven project, built on Juno, that enables voting, staking, lending, and NFT trading for the entire DeFi ecosystem.