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
- Y2 projection is linear. The calculator uses
P × (1 + B − I)as a single-period approximation. For a compound projection over N years applyP × ((1 + B) / (1 + I))^N(or iterate the per-year formula). At small rates (≤5%) the linear error stays below 0.1pp per year; it grows for longer horizons or larger rates. - Lock cap at 90%. The slider is capped at 90% for numerical stability (avoids division by zero as free float → 0). Real protocols can push effective lock much higher — veCRV locks for up to 4 years, Filecoin sector commitments up to 1278 days — so treat 90% as a UI guard, not an economic ceiling.
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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