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.
This phrase refers to the value of a payment token in a single period.
$$ v = \frac{\text{Economic activity conducted in tokens}} {\text{Circulating token supply} *\text{Token Velocity}} $$ Copy 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
Inputs and outputs in the financial modeling for the Sonr token.
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
Token fundamental value
Token price
TVL of Sonr staked
Token circulating supply
Rewards value
Grant reward value