> For the complete documentation index, see [llms.txt](https://protocol.publishinc.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://protocol.publishinc.io/tokenomics/price-action.md).

# Price Action

The price of **$NEWS** is based on the Total Value Locked (TVL), Circulating Supply and the total rewards distributed. Below is a **conceptual** model and a simplified mathematical representation.

1. **Price Determinants**:
   * **Total Value Locked (TVL)**: Represents the total value of assets locked in the ecosystem, influencing demand.
   * **Circulating Supply (CS)**: The number of $NEWS tokens currently in circulation.
   * **Rewards (R)**: Tokens distributed as rewards to participants.
   * **Tips (T)**: Tokens transferred as tips within the ecosystem.
   * **Vouchers (V)**: Tokens distributed through voucher redemption.
   * **Token Burns (B)**: Tokens permanently removed from circulation.
2. **Demand and Supply**:
   * **Demand (D)**: Driven by TVL, user engagement, and utility of the $NEWS token.
   * **Supply (S)**: Influenced by circulating supply, new rewards, tips, and vouchers minus token burns.

## **Mathematical Representation**

We can use a simplified formula to represent the price of **$NEWS** token. This formula captures the core dynamics but does not account for every possible market factor. It's a starting point for understanding the relationship between these variables.

$$
P\_{\text{NEWS}} = \frac{D}{S}
$$

Where:

* $$P\_{\text{NEWS}}$$: Price of $NEWS token
* $$𝐷$$: Demand for $NEWS tokens
* $$𝑆$$: Supply of $NEWS tokens

### **Detailed Breakdown**

1. **Demand (D)**:

   $$
   D = TVL \times U
   $$

   * $$𝑇𝑉𝐿$$: Total Value Locked in the ecosystem.
   * $$𝑈$$: Utility factoris a measure of the overall usefulness and engagement level of $NEWS tokens within the PUBLISH 2.0 ecosystem. It represents how frequently and effectively the tokens are being used for various purposes such as content access, staking, advertising, and governance.
2. **Supply (S)**:

   $$
   S = CS + R + T + V - B
   $$

   * $$𝐶𝑆$$: Circulating Supply of $NEWS tokens.
   * $$𝑅$$: Rewards distributed.
   * $$𝑇$$: Tips given.
   * $$𝑉$$: Vouchers redeemed.
   * $$𝐵$$: Tokens burned.

Combining these, we get:

$$
P\_{\text{NEWS}} = \frac{TVL \times U}{CS + R + T + V - B}
$$

### Example Calculation

Given the current values:

* **TVL**: 100 million
* **U**: 1.5 (indicating active usage and high engagement within the ecosystem)
* **CS**: 5 billion tokens
* **R**: 50 million tokens per year
* **T**: 10 million tokens per year
* **V**: 5 million tokens per year
* **B**: 20 million tokens per year

Plugging these values into the formula:

$$
P\_{\text{NEWS}} = \frac{100,000,000 \times 1.5}{5,000,000,000 + 50,000,000 + 10,000,000 + 5,000,000 - 20,000,000}
$$

$$
P\_{\text{NEWS}} = \frac{150,000,000}{5,045,000,000}
$$

$$
P\_{\text{NEWS}} \approx 0.0297 \text{ USD}
$$

## Conclusion

This simplified formula provides a framework for understanding how various factors influence the price of $NEWS tokens. It helps in assessing the impact of TVL, utility, supply, rewards, tips, vouchers, and token burns on the token's market price. For a more accurate and dynamic model, additional market variables and real-time data should be incorporated.