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.
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.
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
Demand (D):
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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