On #token Economy and Token Price: 3 Best Practices
▻https://hackernoon.com/on-token-economy-and-token-price-3-best-practices-e023f37c5023?source=rs
What makes token price keep rising? I summarized 3 types of logic for rising token price.What is the rational token economy model behind token price? How can some cryptocurrencies’ price keep solid in the long run?Vitalik once mentioned in his blog his valuation for medium-of-exchange token based on Fisher’s formula: M V = P THere:— M is the total number of coins;— V is the velocity of money, that is, the number of times an average token changes hands everyday;— P is the price level, this is the price of goods and services in terms of the token, so it is actually the inverse of the currency’s price;— T is the daily transaction volume, which is the economic value of transactions per dayTo put it simply, if there are M number of tokens, each of them changes hands N times a day, then there’s a (...)
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