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.

Where:

Detailed Breakdown

  1. Demand (D):

  2. Supply (S):

Combining these, we get:

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:

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.

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