These cookies are used to collect information about how you interact with our website and allow us to remember you. interact with our website and allow us to remember you. We can see an example of running such the formula below. Regarding tokenomics auditing, I am very proud to say that I performed the first audit of its kind for the BankX token, which you can find here. Dr. Stylianos Kampakis is the owner and author of The Data Scientist. Our models are prescriptive, meaning they tell you what needs your attention and how different aspects of your tokenomics can be improved in order to get the best possible results. Based on your inputs, our AI-powered algorithms will run through millions of possible setups for your tokenomics and finally produce the 5 different tokenomics scenarios optimized for different purposes. the human miseries and we humans can work towards sustaining humanity. Having 2 parachains requires splitting your attention between the development and maintenance of 2 separate networks. That is, the velocity is the inverse of the proportion of money that is held in cash. Web3 security company Hacken has released the Hacken HAI Tokenomics update on March 1 and its quite striking. We can then sum up the fees generated for each month to get the total fees generated in one year: Total fees generated in one year = Fees generated for each month in month 1 + Fees generated for each month. Token allocation essentially refers to how tokens are shared after the project launch. If you have a question related to our tokenomics calculator or about tokenomics that is not answered in our frequently asked questions, feel free to submit it. As Web3 moves towards a more We believe that a team whose goals are in line with the company makes for the most motivated and productive organization. Miners compete to process a new block of transactions by committing computing power to solve a mathematical puzzle. Here's a handy checklist to get you started. While assets like BTC are deflationary in nature by way of the Halvening, so will be FRM by way of our monetary expansion policy. Likewise, some of the scenarios are similar by definition. This will also add to Ferrums goals of maintaining a deflationary token economy as each time cFRM is transacted, tokens are burned. ECOP (Employee Crypto Ownership Plan)As Web3 continues the brain drain from Web2 and other traditional sectors, organizational benefits for new employees are becoming more common. In the second section, well explore the essentials for DApp development, including the best practices, methodologies, common vulnerabilities, audit process, and tools. Da sich Team tokens wouldve been entirely vested by August of 2023. As Web3 moves towards a more A tokens value can be indicated by the fully diluted market cap, which is essentially a product of the tokens maximum supply and the current market. Da sich Developed by the industry top tokenomics experts and starting at the best possible price - free. In the Value optimized scenario of the calculator (for example), will this give the setup with the highest possible token value? Can I use the calculator for multiple projects? Transaction fees are also one of the mechanisms used to reward QPMs and QPVs as well as fund the Treasury. Aiming to make the ICO community self policing in order to make them capable of solving the problems encountered by ICO domains today. The General Tokenization Manifesto specifies the standards to successfully launch an ICO and STO. We can just set the parameterk as the proportion of tokens that are not being actively exchanged within a given time window, and hence we can directly estimate velocity (and the holding time). We are giving you the next best thing, for a fraction of the cost. Tokens could serve different functions in a network other than serving the role for trading assets only. Tokenomics by FinDaS. Tokenomics can also be used as a guide for determining cryptocurrency value in the future. This is meant to prevent DDoS attacks by making such attacks prohibitively expensive and eliminating the possibility of an attacker generating millions of small transactions to flood and crash the system. ECOPs are quickly becoming one of the strongest elements in the recruitment toolkit to attract top-tier talent. Taha Abbasi, CSO at Ferrum Network. Tokens are continually distributed by block rewards. That is the point in time where the weight between the original ICO price and the real valuation will be completely balanced. We have done a considerable amount of due diligence on all of the major players and have concluded that Arbitrum is the best fit for the newly minted FRM supply. However, Ethereums tokenomics model will likely change as the network transitions to a PoS consensus system. Perhaps a regression or, The model is not fully supporting confidence intervals yet. Tokenomics has become a popular term in the last few years to describe the math and incentives governing crypto assets. Tokenomics refers, first and foremost, to the structure of a cryptocurrency's value as defined by its designers. We can likely reserve much of the FRM for a crowdloan on Polkadot in the future. The term tokenomics is derived from a combination of the words token and economics. 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! Then you need to check this out ! This includes but is not limited to areas such as Exchange Liquidity & Market Making, Bridge Liquidity, Ecosystem, and Mainnet and Parachain Fund. Here is a breakdown of how the Merge actually impacts the supply of FRM and current FRMx and cFRMx holders and stakers. Crypto tokens can be exchanged with other tokens on a different blockchain or held in wallets to gain value with time. Developed by the industry top tokenomics experts and starting at the best possible price - free. Tokens could serve different functions in a network other than serving the role for trading assets only. If you purchase one of their tokenomics packages, you get a way more detailed tokenomics and they can fully support you with interpreting and fine tunning your project's tokenomics. Given that, we can calculate the price of token as follows. Through careful breakdown of this data, hidden insights on business processes and activities could be unlocked which can even make them perform better. We employ a unique data-driven approach to tokenomics, rather than the usual "what is currently popular". In particular, after transforming its community into hDAO, its CEO plans to give away 10% of its equity for 100,000,000 HAI tokens.. Of course, many other factors can affect a project's success, but token distribution is one factor that is definitely worth considering. Additionally, since we always optimize for sustainability first, this sometimes limits the variability of scenarios. Also, make sure to check out this article on how toread ICO white papers. However, it does not lend itself well to establishing a presence as a network. customize your browsing experience and for analytics and metrics about our visitors both on this website and 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. WebData-driven Tokenomics consulting. Tokenomics has become a popular term in the last few years to describe the math and incentives governing crypto assets. - The initial optimized scenarios will be based only on your original input in the questionnaire (e.g. WebGet the most powerful tokenomics calculator template & simulation available, including future token price predictions and project sustainability scores. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. This can give them an idea as to the inflation that the token may be subjected to in the future and how evenly tokens are distributed amongst the community. When we have M, T and C calculating H (or V) is trivial. WebPurchase your tokenomics calculator with cryptocurrency in a few easy steps at: tokenomics-calculator.com. Our process focuses on your business and builds the tokenomics on top of that. The tokenomics model depends a lot on the tokens represented in form of cryptocurrencies. Tokenomics will help investors understand the purpose, functionality, uses cases and distribution of a particular token. This is still work-in-progress and it is covered in another post. 3% of the Max Supply will be added to the Treasury for this purpose. Investor optimized (highest RoI for token investors, valid only if your token has a sale) Since cFRM will now exist on Arbitrum, that also means that Crucible is also now compatible with Arbitrum! This pool will then be distributed with 80% going to QPMs and QPVs and the other 20% going to the Treasury. The reason why you get a spreadsheet is because this remains the most widely used, understood and requested data delivery medium. In the traditional economy, economists monitor the issuance of a currency using official money supply data. To recap, in our model we assume that we know the following: Note that while point 2 is the most difficult one, we can always run different scenarios, in order to figure out how the price will react. A second way is to find a way to calculate confidence intervals around the price of the tokens. monthly). p is the total supply of FRM after the merge, p1 is the current circulating supply of FRM, p1 is the change in circulating supply of FRM resulting from the merge, s1 is the change in non-circulating supply of FRM resulting from the merge, x1 is the amount of newly converted FRM tokens that the user will receive in exchange for their FRMx tokens, ua is the amount of FRMx or cFRMx tokens that the user currently holds, m is the market price of FRMx at the time of the snapshot, n is the market price of FRM at the time of the snapshot. In the figure above we have a hypothetical ICO that is selling at $0.25. If you are interested in topics such as tokenomics, blockchain, DeFi, but also data science and AI, make sure toget in touch. I would be more than happy to speak with you. 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. 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. In this article, were going to be outlining Ferrums master plan for a FRMx/FRM merge, why this is in the best interest of the community and the future network, and the tokenomics and monetary policy that will support the Ferrum Network for years to come. This time theyve agreed to lock the Team tokens for an additional 12 months and extend the release schedule from 36 to 48 months! First we take those 5 steps. The world is changing rapidly, and the world of crypto is leading the change. So there are a few items to consider when determining how to charge transaction fees. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. Ferrums original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network. This could lead to stagnation, or even worse, a complete collapse of the project. You can use this tool for a proof-of-concept, however beyond that, we strongly recommend that you get your final tokenomics designed by an expert in the filed. The arrival of Ethereum gave a substantial boost to the concept of tokens with cryptocurrencies. 4% of the Max Supply will be added to the Treasury for this purpose. Drop us a word to get started with our tokenomics calculator tool. A million dollars a year in revenue from a suite of Blockchain as a Service products simply will not cut it when it comes to maintaining a network and incentivizing behavior on a network. The scenarios are not supposed to be fundamentally different (except in certain cases). Aiming to make the ICO community self policing in order to make them capable of solving the problems encountered by ICO domains today. By Eloisa Marchesoni Audits should be tokenized, so maybe the ones done badly (like Read more, Wanna become a data scientist within 3 months, and get a guaranteed job? You can determine the ideal token allocation for your project by evaluating various factors such as the business plan, target market, projected market penetration, and token utility. Year 2 saw a drastically reduced emission rate of 7.45%. WebData-driven Tokenomics consulting. We can easily assume that at t_0 the price of the token is equal to the sale price during the ICO. This whitepaper explains artificial intelligence revolutionizes your business by delivering better business returns and process efficiency. Youve probably heard of the term tokenomics which has become quite popular in the crypto space in recent years. Thats an extra 2 years that Ferrum has added to the vesting for their own tokens. WebTokenomics Calculator allows you to create and fine-tune a token economy in hours, not weeks. How much does it cost to design a tokenomics for your project. In addition to the upcoming Ferrum Network mainnet, the Merge calls for necessary adjustments to be made. Exchange Liquidity & Market MakingFerrum has done a great job of reaching different types of holders across multiple centralized and decentralized exchanges alike. The p formula is used to determine the total supply of FRM after the merge. The technical storage or access that is used exclusively for anonymous statistical purposes. The foundations etc. Please visit our career page Since then, the emissions rate for years 3 and 4 of 7.45% has stayed consistent. If you like the free version, you have the option to unlock the full power of our tokenomics calculator with features such as: Here are some of the most crucial elements to consider while analyzing the tokenomics of a cryptocurrency. Additionally, tokenomics can help to identify potential risks and challenges and to design effective governance and monetary policies that can help to mitigate these risks and ensure the long-term success of the token-based system. For every business, data is a valuable element that drives business growth and technological innovations. The first question you may be asking yourself is whether this will increase the supply of FRM. In the cryptosphere, tokens can be treated as another word for cryptocurrency or crypto assets. See an example of an unlocked calculator. MarbleDAO is a community-driven project, built on Juno, that enables voting, staking, lending, and NFT trading for the entire DeFi ecosystem. Estimating velocity can be tricky. Moreover the challenges faced while adopting AI in to a business is also described here. Projects like Solana, BNB, Celo and Flowallocated more than 40% of their token supplies to insiders while projects likeEOS, Cosmos, Ethereum,Cardano and Tezos allocated the majority (>70%) to their public sale. other media. Its important to note that Kusama parachains are much more inexpensive to secure meaning we likely wont need to give up many tokens, if any, by way of a crowdloan. Since Ferrums inception, the team has DOUBLED the amount of time theyre waiting to tap into their allocation of $FRM. - All 5 tokenomics scenarios unlocked Firstly, it is simply a mashup of two words token and economics. ECOP stands for Employee Crypto Ownership Plan and is structured very similarly to ESOP (employee stock ownership plan). It's important to strike a balance between creating a sufficient supply of tokens for potential customers to acquire and ensuring that the token's value is optimized based on its intended utility. WebTokenomics the topic of understanding the supply and demand characteristics of cryptocurrency. We anticipate quite a lot of volume to be generated from transactions happening in the first days of Crucible being live on Arbitrum so make sure to get in early to take advantage of the early APRs. Hacken, a Web3 security company, has released the Hacken HAI Tokenomics update. We will start measuring yearly emissions from the moment the Merge is complete. Market Design refers to the infrastructure needed for transactions, such as an app that allows users to pay membership fees and launch. 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. If you use the full version of the model and decide that you want the service of a tokenomics expert, our partners at FinDaS will do this at a discount. Access Calculator Now Unlock the power of your token economy and make smarter token modeling decisions, using Tokenomics Calculator. Tokenomics is an integral aspect of any crypto ecosystem, allowing projects to prevent bad actors, establish trust, and build a strong, long-term ecosystem. This document contains technical specifications, a feature list, and other useful information for your NFT project. Get the latest crypto news, updates, and reports by subscribing to our free newsletter. You also need to ensure that a token can appreciate in value, and also to audit the token economy to ensure that there are not any weak points. PresalesThe minimum requirement for Presale participation is now 30,000 cFRM staked in Crucible. Unfortunately, we cannot offer model interpretation services or support. Analyzing tokenomics is a three-step process. First we take those 5 steps. We employ a unique data-driven approach to tokenomics, rather than the usual "what is currently popular". Take the relationships between Moonriver/Moonbeam or Karura/Acala or Shiden/Astar for examples. Decide on a time window (e.g. Approved by 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. This is a simple tautology coming from monetary economics. In the cryptosphere, tokens can be treated as another word for cryptocurrency or crypto assets. When creating a token, it is important to consider its design, financial incentives, and governance policies. In the final section, well explore the fundamentals of token economy design for your blockchain project. Ethereums PoS issuance currently stands at approximately 4.5% with 2 Ether per block. They can function as securitized tokenization of bonds, stocks, properties, real-estates and more. How many tokens are released via the Merge will determine how many tokens will be released every expansion period from the reserves (aka the uncirculated supply). This is more suitable for our purpose of evaluating ICOs and tokens. Considering that only one block can enter the Ethereum chain, the block that gets validated across more nodes becomes the canonical block, while the other becomes the uncle block. TeamOne major change that was announced a while back pertains to the Ferrum team tokens that make up 10% of the Max Supply. The world is changing rapidly, and the world of crypto is leading the change. For simplicity, we can assume this is stable over the full time window. Treasury tokens will remain in multi-sig safes and will be released via governance mechanisms as we continue to iron out a state of the art approach towards governance. The model picks this number such as to keep the token sale prices nice and round. The formula is: The variables in the p formula represent the different components that make up the total supply of FRM after the Merge. Heres the formula to calculate the transaction volume for each month: Transaction volume = 100,000 * (1 + 0.2)^n, where n is the number of months. Successfully delivered 30+ Core Blockchain solutions, 100+ Asset tokenizations, 20+ NFT marketplaces, and 10+ Crypto exchanges. Hence, for the first few months the price will be equal to the ICO price, as the equation above be roughly equal to: Regarding the modelling of uncertainty, there are two ways to improve the model. In order to by pass this we just need to use variable values from the previous timestep. We learned that most folks on the inside of the Dotsama ecosystem are urging young projects to steer clear of the 2 parachain approach. In the first section, well explore how to choose the right blockchain for developing your DApp. You can also think of the reserves as the uncirculated supply. Important Note: Keep in mind that if you want your newly airdropped FRM tokens to qualify toward Presale allocations and/or Governance Committee holding requirements, they will need to be converted to cFRM and staked in Crucible. Furthermore, we are thrilled to bring our newly designed tokenomics and monetary policy to the community along with the newly released Whitepaper! Agent based simulators - Those are great simulation tools, however they are very tedious to configure and assume you have quite a bit of tokenomics knowledge yourself. Payment Tokens - Payment tokens are used to facilitate transactions involving buying and selling goods and services on digital platforms without an intermediary. Profitability optimized (most revenue retained by the project balanced with decent token value) If every expansion period, a total of 0.3% of those tokens are released, that means that the supply of the reserves will reach 132,500,000 in just under 4.5 years. FRM has a fantastic distribution for a utility token used to power dApps. Quoting Wikipedia: The left hand side is simply the total amount of money, multiplied by how many times it changed hands. These cookies are used to collect information about how you WebData-driven Tokenomics consulting. - A way to quickly get an automatically generated tokenomics setup, which will still be better than majority of the tokenomics setups out there. A well-structured tokenomics is perhaps the most important factor that determines the success of an ICO and the dApp. Note: Most Web3 teams have between 6 and 12-month cliffs and release schedules lasting from 12 to 36 months. 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. Convert their FRM to cFRM and stake it in Crucible to earn sustainable APRs. The tokenomics model depends a lot on the tokens represented in form of cryptocurrencies. 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. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. The size of the transaction. We then asked ourselves, WHY have we been planning on opting for the 2 parachain approach ourselves? We are Tokenomics consultants that have been in crypto since 2015 and have worked on 220+ projects. Decide on a time window (e.g. As technology advances, it may help you outpace your competition and grow your firm. Vesting refers to the process of locking and releasing tokens after a particular period. Some common classifications of cryptocurrency tokens include: Layer 1 Tokens - Layer 1 crypto tokens are tokens with their own blockchain. For example, lets say that 40% (roughly 265,000,000) of our total supply of tokens are in the reserve after the Merge takes place. Imagine what the valuation of their Polkadot chains would be if their community members didnt have to decide between them and their Kusama counterparts. Assuming we have a fixed transaction fee of 0.1 FRM for each transaction. Such factors include the tokens creation and distribution, its supply and demand, incentive mechanisms, as well as its burn schedules. This makes calculations conceptually easier for an ICO. 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. It has long been the goal of the team to make FRM deflationary by way of the network as well. Join my exclusive data science program and get mentored personally by me. Most of the suggested valuation models right now involve around the equation of exchange. They represent any crypto that isnt bitcoin or ether. Governance CommitteePreviously GC Members were required to hold either 250,000 cFRM / 20 cFRMx OR 750,000 cFRM / 10 cFRMx. However, were hoping for other major tier 1 exchange listings in the not so distant future! This website uses cookies for functionality, analytics and advertising purposes as described in our. 1. 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. customize your browsing experience and for analytics and metrics about our visitors both on this website and We strongly believe that these updated tokenomics put us in a position to achieve our long term vision and goals.