Scope
This calculator models the fixed-discount case. For tiered (bands by balance) and dynamic D = min(D_max, max(0, D_base·(P_target/P_market)^k)) discount structures, see the discount model article.How to use
- Platform fee (%) — fee per transaction without using the token (e.g. 0.10% on an exchange).
- Trading volume ($/year) — annual trading volume on the platform eligible for the discount.
- Fee discount — percentage reduction in fees when holding the token. Determines maximum savings.
- Circulating supply — how many tokens are available on the market. P_max is inversely proportional to circulating supply.
- Discount utilization — what fraction of users actually use the discount. Reduces theoretical P_max.
- Burn rate (%) — what fraction of tokens used for discounts is burned permanently. Reduces supply and raises P_max.
Calculator
Discount Token Calculator
Note on "Burned per year": under the P_max framing, burn reduces to
Util × Supply × Burn_rate, independent of fee/volume. Real-world burns use actual market price P_market, which is typically < P_max.Formulas
P_max = Fee × Volume × Discount_% / Supply
- P_max — fundamental price ceiling at 100% utilization (computed)
- Fee — platform fee per transaction (fraction, e.g. 0.001)
- Volume — annual trading volume on the platform ($)
- Discount_% — fee discount when holding the token (fraction, 0 to 1)
- Supply — circulating token supply
P_max_real = P_max × Utilization
- P_max_real — price ceiling adjusted for actual utilization (computed)
- Utilization — fraction of users actually using the discount (0 to 1)
Supply_after_burn = Supply - (Annual_demand / P_max) × Burn_rate
- Supply_after_burn — token supply after annual burn (computed)
- Annual_demand — annual token demand for discounts ($) (computed)
- Burn_rate — fraction of discount-used tokens that are burned (0 to 1)
- Reduced supply increases P_max in the following year
D = min(D_max, max(0, D_base × (P_target / P_market)^k))
- D — dynamic discount rate (reference only — not implemented in this calculator)
- D_max — hard cap on the discount (fraction, e.g. 0.5)
- D_base — baseline discount at reference price (fraction)
- P_target — target token price used as the policy anchor ($)
- P_market — observed market price of the token ($)
- k — sensitivity exponent (how aggressively discount responds to price deviation)
- Shown for reference — see the discount model article for tiered and dynamic variants.