# 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**

**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**

**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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