Tokenomics= Token + Economics Tokenomics is simply the quality of a token that creates demand for that token from investors. As technology advances, it may help you outpace your competition and grow your firm. It includes everything about the mechanics of how the asset works, as well as the psychological or behavioral forces that could affect its value long term. In particular, after transforming its community into hDAO, its CEO plans to give away 10% of its equity for 100,000,000 HAI tokens.. All of the early parachain projects were doing it so it seemed like this was the standard approach. In addition to the upcoming Ferrum Network mainnet, the Merge calls for necessary adjustments to be made. We'll also look at the lending platform's process flow, a roadmap, and other topics that will help you grasp the fundamentals of building a DeFi lending platform. No content on our Site is meant to be a solicitation or offer. It is also helpful to have a baseline understanding of the concept of tokenomics. You will receive an email with instructions on how to reset your password in a few minutes. Fill in our tokenomics calculator questionnaire, that will give us all the required data to prepare your tokenomics. It requires double the buy pressure to move the price of one token. This guide includes technical functionalities, a feature list, and more viable information for your project. Layer 2 tokens can be new tokens or more complex dApps project tokens. We will in fact, however, consider removing the unwrapping fee if they so choose to opt for our autocompounding feature that allows them to restake their rewards on the network. Tokenomics is generally a broad term describing the demand and supply characteristics of cryptocurrency. Transaction fees are mostly meant to cover the processing and long term storage cost of transactions. Tokens with no apparent utility should be a red flag for avid investors since they have no solid use case. This tokenomics calculator is created in partnership with FinDaS - world leading tokenomics experts with more than 220+ projects of experience. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. The formula is: Lets assume that a user holds 2 FRMx tokens at the time of the snapshot. Tokenomics is an indispensable part of an ICO, or what these terms is more generally referred as a token offering (this term can encapsulate Initial DEX offerings, IDOS, or other forms of token offerings). Do you want to learn how to build an NFT marketplace platform from the ground up? In this whitepaper, weve rounded up a checklist for the basics of launching a DeFi staking platform. We run several thousands of tests each week on our models in order to make sure they are correct and produce the best possible results. Can I get support for interpreting/fine-tuning the model's results? Unlike Bitcoin, Ethereum is inflationary and doesnt have a maximum supply cap, meaning that ETH supply continues to grow with growth in the network. Aiming to make the ICO community self policing in order to make them capable of solving the problems encountered by ICO domains today. The arrival of Ethereum gave a substantial boost to the concept of tokens with cryptocurrencies. The tokenomics model depends a lot on the tokens represented in form of cryptocurrencies. They are Treasury, Team, and ECOP (Employee Crypto Ownership Plan). Sometimes on the Ethereum blockchain, two blocks are mined and broadcasted simultaneously and with the same block number. This time theyve agreed to lock the Team tokens for an additional 12 months and extend the release schedule from 36 to 48 months! Bridge pools would need to exist on networks that MultiSwap is integrated with. If you answered very few of them, the model becomes generic. In particular, after transforming its community into hDAO, its CEO plans to give away 10% of its equity for 100,000,000 HAI tokens.. Ethereums PoS issuance currently stands at approximately 4.5% with 2 Ether per block. In addition to tracking price, volume and market capitalisation, CoinGecko tracks community growth, open-source code development, major events and on-chain metrics. If you are looking to take your tokenomics to the next level, there is no one we could recommend more! This was primarily due to the vesting for the private and public sales. In the free version - none. All of our models optimize for tokenomics sustainability first and foremost. Ferrum now has a 48-month cliff followed by a linear release schedule lasting 48 months for a whopping total of 96 months of vesting! on innovations to make this future closer to us. You should conduct your own research, review, analyse and verify our content before relying on them. Even the founder of Parity, Gavin Wood himself, in an interview with Space Monkeys Crypto Podcast at Polkadot Decoded Buenos Aires, mentioned his disapproval of the 2 parachain approach, when he says one of the things thats happening wasnt something that I foresaw and its not something that I necessarily think is a good idea, is that teams often times launch 2 networks. For example, if a project's tokens are primarily owned by its founders, they will have significant control over the project's governance and could make decisions that are not in the best interests of the network as a whole. Second they optimize for the scenario target. To us, and many others in the Dotsama ecosystem, this was the best display of how Polkadots canary network, Kusama, was intended to be used, and very reminiscent of Gavin Woods quote from earlier in the article. We can easily assume that at t_0 the price of the token is equal to the sale priceduring the ICO. Payment Tokens - Payment tokens are used to facilitate transactions involving buying and selling goods and services on digital platforms without an intermediary. We use this information in order to improve and As mentioned earlier, a crypto token is a denomination of a cryptocurrency or a virtual currency representing a tradable asset or utility on a blockchain network that allows traders to hold it or use it for investment or economic purposes. Analyzing tokenomics is a three-step process. Through careful breakdown of this data, hidden insights on business processes and activities could be unlocked which can even make them perform better. A lot has changed by way of our ambitions since the days of providing solely Blockchain as a Service products and incubating projects through Ferrum Advisory Services. Looking for inspiration to kickstart your tokenomics strategy? It provides a new way to estimate holding time/velocity, as the proportion of tokens that are being held as a store of value. To curb the COVID-19 crisis a reliable pandemic management system is necessary. Set an average price P in $ for the service provided by the company. WebBitcoin went live in January 2009, based on a set of rules - the Bitcoin Protocol - that included a clearly defined supply schedule: New bitcoins are created through Mining. Since the market price of FRMx is $570.88 and the market price of FRM is $0.06635 to calculate the amount of newly converted FRM tokens that the user will receive in exchange for their FRMx tokens, we can plug the variables into the x1 formula: The user will receive approximately 17208.138658628485305 FRM tokens in exchange for their 2 FRMx tokens. If you remember earlier in the article there was a section regarding retaining enough reserve tokens to ensure the success of the network. Mainnet and Parachain FundTo ensure the successful launch and evolution of the Ferrum Network, we want to remain open to secondary mainnet or node raises and/or parachain crowdloans. FRM became a deflationary asset as part of the creation of the Ferrum Cross-Chain Token Bridge, which is of course evolving into our multi-chain swapping protocol, MultiSwap. Insbesondere plant der CEO nach der Umwandlung seiner Community in hDAO, 10 % seines Eigenkapitals fr 100.000.000 HAI- Token. The model is not taking into account speculators or other exogenous shocks to the economy. This will reduce both potential sell pressure and emissions of FRM upon the Merge. To find out more about the cookies we use, see our Privacy Policy. Most importantly however, we feel that the newly designed tokenomics,monetary policy, and Whitepaper will help set Ferrum Network up for success as we push forward toward mainnet and our vision of Interoperability 2.0! WebBitcoin went live in January 2009, based on a set of rules - the Bitcoin Protocol - that included a clearly defined supply schedule: New bitcoins are created through Mining. The technical storage or access that is used exclusively for statistical purposes. Theres also an additional 1.75 Ether per uncle block with fees being rewarded to miners. The free version - anyone who has the link can view the file. We have 2 tokens and this seemed like the logical way to maintain utility for FRMx. Vesting ensures the team has a financial interest in continuing to grow the project, which in turn establishes faith in the project from investors. Set the expectations factor. If you have already developed a product that is not functioning as intended, allow us to help you bring it to market quickly and efficiently. In this article, we explain more about how the equation of exchange can be used in order to study different scenarios: from appreciation to depreciation. He is a member of the Royal Statistical Society, honorary research fellow at the UCL Centre for Blockchain Technologies, a data science advisor for London Business School and CEO of The Tesseract Academy. AI FOR BUSINESS TRANSFORMATION: How AI can make your business 2X more profitable. As Web3 moves towards a more 4. Set the total number of tokens M. Set the expectations factor. There are more advanced tools than spreadsheets and this is why the file which you get is not standalone. Approved by The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. The release of these roughly 66 million tokens will not begin until August 2023, and they will not be fully vested until August of 2027! Bitcoin and other altcoins are the best examples of fungible tokens. There are a multitude of other reasons as to why we think its wise to focus on a single network. Set the total number of tokens M. Set the expectations factor. Crypto tokenomics is therefore the overall economics of a specific crypto token with regard to the value of the crypto coin and whether its value is likely to rise or fall over time. Given that, we can calculate the price of token as follows. Firstly, it is simply a mashup of two words token and economics. Please visit our career page WebTokenomics Calculator will help you understand tokenomics better, calculate token metrics and experiment with numbers while modeling the balanced token economy that matches your business model and can help it scale! Well-performing crypto projects have their ecosystem built around their tokens. The file is connected to our computation back end and if you download it, this connection breaks and the file will return errors. If one notices that a network yet to experience meaningful adoption doesnt have a healthy portion of tokens in their reserve relative to their pre-existing circulating supply they may wonder how they intend on incentivizing both user engagement and dev activity on the network. 1. For more information on Presale holding requirements, check out this link: https://ferrum.network/fas-incubator/. This means that transaction fees would need to be extremely high to justify validators wanting to stake on the network, and extremely high transaction fees would in turn discourage users. This will also add to Ferrums goals of maintaining a deflationary token economy as each time cFRM is transacted, tokens are burned. We are Tokenomics consultants that have been in crypto since 2015 and have worked on 220+ projects. We can then calculate the real value of the token as: A proper solution would require us to calculate the derivative ofH_t or simply break down the calculations in many small timesteps (e.g. Before making a payment, we recommend that you go over our terms and conditions. It is important to remember that this is a merge of two assets within the same ecosystem as opposed to the inflation of the overall value of the token economy. Here's a handy checklist to get you started. Value optimized (best token value) Token design refers to the actual token that is used for transactions within the market. We are interested in creating forecasts of the value of a token. In crypto, tokenomics is a collective term used to capture a tokens economics by describing the factors that affect a tokens use and value. Here's a step-by-step checklist to get your e-Learning project off the ground. Yes, you can! This whitepaper will explore the essentials for launching a successful blockchain product. This wouldve meant that Team tokens wouldve been fully vested by August of 2025. A second way is to find a way to calculate confidence intervals around the price of the tokens. Non-Fungible Tokens (NFTs) - NFTs are a unique form of cryptocurrency tokens which have no similar value. HOW TO GAIN INVESTORS TRUST IN YOUR ICO, STO ? Also, please make sure to check out the page of the Tesseract Academy, my consultancy which deals with education and services in the both the areas ofAI and blockchain. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. First we take those 5 steps. Perhaps FRM will serve as a sort of routing token for MultiSwap in the future. We can model this using an S-adoption curve and the following equation: Where S(t) is the expectations curve, which can simply modelled as a modified version of a logistic function. HOW TO GAIN INVESTORS TRUST IN YOUR ICO, STO ? you need to explicitly share the link with someone in order for them to know about it). However, more on how the Treasury will be funded by network activity will be discussed in the section surrounding Ferrums Monetary Policy later on in the article. customize your browsing experience and for analytics and metrics about our visitors both on this website and QPMs and QPVs would be reliant solely on transaction fees. While Ferrums main utilities have been limited to BSC thus far, Ferrum plans to take its products multichain and create a multichain token standard via the Ferrum mainnet. for latest job openings, Essentials for launching a successful blockchain product, Learn on How to develop an Online Education Platform, NFT Marketplace Platform Development handbook, Crypto Lending Platform Development Guide and Functional Requirements, Development Checklist to build a Crypto Exchange, DeFi Staking Development Guide and Functional Requirements, The Scope of Business Modernisation with NFTs, Effective COVID-19 control through carrier tracking and non-pharmaceutical interventions. We believe, we are striding into the next phase of human evolution where technology negates - The initial optimized scenarios will be based only on your original input in the questionnaire (e.g. FRMx allows us to have the best of both worlds. For this, we recommend our partners at FinDaS.org who are world-leading tokenomics experts and helped us design this tokenomics calculator. This whitepaper explains artificial intelligence revolutionizes your business by delivering better business returns and process efficiency. To find out more about the cookies we use, see our Privacy Policy. This website stores cookies on your computer. However, the lessons here apply for any kind of crypto project, even those that are not planning to do a token offering. Factors of tokenomics are basically the different aspects of a crypto token that affect its value. Purchase with crypto We accept crypto payments , however they are not fully automated yet. Investors can use the different aspects of tokenomics, such as market supply, allocation, and more, to determine whether a crypto project is a viable investment. Layer 1 tokens function to provide access to the blockchains resources including paying for network services such as transaction fees, minting tokens, and paying for smart contracts. Tokenomics can also help to create alignment between stakeholders, such as token holders, developers, and users, and to ensure that the token-based system can support its growth and development over time. Tokenomics will help investors understand the purpose, functionality, uses cases and distribution of a particular token. If we release 0.3% of that supply every 7 days, we will have a year 1 emissions rate of around 12.35%. The inputs which produce most of the variability are the ones that have a token sale, have a medium to high risk tolerance, have answered 60-70% of the questions, but still have left some things for the model to decide. An issue we are facing is the interdependency between holding time and token price at a given moment in time. The first step is to collect relevant token data for a cryptocurrency. Therefore, we have decided that 20% of tokens released every expansion period will be allocated to the Treasury. These two values are then added together to give the total supply of FRM after the Merge (p). ECOPs are quickly becoming one of the strongest elements in the recruitment toolkit to attract top-tier talent. Taha Abbasi, CSO at Ferrum Network. A minimum payable fee. In terms of CEXs, were happy with being listed on Kucoin, Gate.io, and Ascendex. Thats an extra 2 years that Ferrum has added to the vesting for their own tokens. Hold it without staking to take advantage of cFRM/FRM arbitrage opportunities, How Quantum Portal Miners (QPMs) and Quantum Portal Validators (QPVs) will be rewarded for ensuring the security, efficiency and overall effectiveness of the network, QPMs and QPVs will be incentivized to grow their stake in the network, How the distribution of these tokens for the aforementioned items can sustain equilibrium as it pertains to emissions. Both cryptocurrency and tokens are forms of digital assets that utilize cryptography technology.What does that mean?To implement tokenization in your project, it's essential to determine the total number of tokens to be created. He has worked with many different types of technologies, from statistical models, to deep learning to blockchain and he has 2 patents pending to his name. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. In particular, after transforming its community into hDAO, the company plans to give away 10% of its equity for 100,000,000 HAI tokens. Bridge LiquidityThere is a chance that some Treasury tokens will go to support bridge liquidity. Shreds Powder. For every business, data is a valuable element that drives business growth and technological innovations. The recent updates in the NFT domain are quite surprising. THIS is where FRMx comes in. What we do know is that we want FRMs reserve to have a half life of around 4.5 years. the human miseries and we humans can work towards sustaining humanity. With lower DeFi yields, the market has looked towards tokenizing real world assets, bringing them onto the blockchain to create yield opportunities. Tokenomics in crypto refers to the economic principles and design of token-based systems in the cryptocurrency industry, such as blockchain networks, initial coin offerings (ICOs), and decentralized applications (dApps). WebTokenomics Calculator will help you understand tokenomics better, calculate token metrics and experiment with numbers while modeling the balanced token economy that matches your business model and can help it scale! Profitability optimized (most revenue retained by the project balanced with decent token value) In turn, those projects, have raised over 1BN USD in funding. This yearly rate of emissions will reduce itself as the supply of the reserve fades. Token distribution should ideally be diversified to ensure that no single group has too much power and that the project can remain decentralized and neutral over time. - The ability edit and modify the scenarios in order to generate what-if simulations Our process focuses on your business and builds the tokenomics on top of that. Even while they do that, they do not ignore everything else, instead they try keep most tokenomics parameters within reasonable ranges. Then you need to check this out ! The goal is to be so successful on Kusama, that we wont need to conduct a crowdloan on Polkadot either! What this model is not taking into account is: User expectations are not easy to model. Balanced one (closest one to your initial inputs, balanced monetary policies) In order to by pass this we just need to use variable values from the previous timestep. However, getting started with the tokenomics design can be quite overwhelming. Investor optimized (highest RoI for token investors, valid only if your token has a sale) In this whitepaper, weve rounded up a checklist for the basics of launching a DeFi staking platform. The first step is to collect relevant token data for a cryptocurrency. The initial step is establishing a token policy, which defines how the tokens will be governed and include token valuation and monetary policies. Tokenomics plays an integral role in determining the success of a crypto project. What are the calculator file permissions? Successfully delivered 30+ Core Blockchain solutions, 100+ Asset tokenizations, 20+ NFT marketplaces, and 10+ Crypto exchanges. Firstly, it is simply a mashup of two words token and economics. WebTokenomics Calculator Tokenomics Calculator by on Sat Sep 8 A well-structured tokenomics is perhaps the most important factor that determines the success of an ICO and the dApp. WebBitcoin went live in January 2009, based on a set of rules - the Bitcoin Protocol - that included a clearly defined supply schedule: New bitcoins are created through Mining. Quoting Wikipedia: The left hand side is simply the total amount of money, multiplied by how many times it changed hands. Insbesondere plant der CEO nach der Umwandlung seiner Community in hDAO, 10 % seines Eigenkapitals fr 100.000.000 HAI- Token. We guide you through the complexities of blockchain, providing you with a seamless experience. Developed by the industry top tokenomics experts and starting at the best possible price - free. Access Calculator Now Unlock the power of your token economy and make smarter token modeling decisions, using Tokenomics Calculator.