How to use
- Transaction volume (PQ) — annual economic throughput in dollars flowing through the token.
- Velocity (V) — how many times per year each token changes hands. Higher V = lower price (token isn’t held).
- Total supply and Locked from supply — determine the number of tokens in free circulation. Locking (staking, collateral) increases the price of remaining tokens.
- Burn and Inflation — annual rates as % of supply. Net supply change affects price after one year.
- The chart shows price vs. velocity. The table displays market cap, price, locking effect, average holding time, and 1-year projection.
- This calculator inverts the parent-article V_effective formula: given V, it computes the price consistent with MV=PQ on the free float.
Notes on assumptions
- Year-2 price is exact, not a linear approximation. The calculator applies
Supply_year2 = Supply × (1 + Inflation − Burn)and re-applies the price formula,P_token = M / (Supply × (1 − Locked)), to that new supply—givingptokenY2 = M / (Supply_year2 × (1 − Locked)). Algebraically this equalsP_token / (1 + Inflation − Burn): an exact ratio with zero approximation error at any rate, not the linear estimateP × (1 + Burn − Inflation)sometimes used as a mental shortcut. The calculator never takes that shortcut, so there’s no fixed error bound to quote—the Year-2 row is precise for the inputs shown, however large Inflation or Burn get. - Lock cap at 90%. The slider is capped at 90% for numerical stability (avoids division by zero as free float → 0). This is a UI guard, not an economic ceiling—some protocols push the locked share of supply meaningfully higher through aggressive staking, bonding, or vesting design.
Calculator
Payment Model Calculator
Formulas
M = PQ / V
- M — fundamental token market cap (computed)
- PQ — annual transaction volume in dollars
- V — token velocity (turns per year)
P_token = M / (Supply × (1 - Locked))
- P_token — fundamental price per token (computed)
- M — fundamental market cap (computed above)
- Supply — total token supply
- Locked — fraction of tokens locked from supply (staking, collateral)
Supply_year2 = Supply × (1 + Inflation - Burn)
- Supply_year2 — token supply after one year (computed)
- Supply — current total supply
- Inflation — annual emission (fraction of supply)
- Burn — annual burn (fraction of supply)
- Assumption: the locked fraction (Locked) remains unchanged in the year 2 projection