Use Cases

Use Cases

Sonr token operations and economics.

Use Cases

The price of a token is the exchange rate of the token for fiat. The value of the token can be modeled in terms of fundamental demand drivers and effective supply. The demand of the token is driven by the property rights granted by the token, and the effective supply is driven by the number of tokens to which a specific set of rights are granted.

\text{Token Price \textbf{(SNR)}} = \text{\underline{Fundamental Value}} + \text{\textbf{Token Specific} Non-Fundamentals} + \text{\textbf{Market/Industry} Non-Fundamentals}

Token-Specific Non-Fundamentals are every external price shocks which only effect the Sonr Token. They are the result of either marketing or pure luck, for example:

  • Super Bowl Ad
  • Viral Marketing Campaign with “How much big tech owes you”
  • Elon Musk tweeting about us

Market/Industry Non-Fundamentals are driven by the total blockchain industry at large. These shifts in sentiment create price shocks which impact every network. Some recent examples include:

  • 2021 NFT Bull Run
  • 2022 Crypto Crash

Implemented by Sonr

Under consideration by Sonr