5. Dynamic Burn Mechanism (24 months):

To achieve a token price of $1 or better by the end of 24 months, with a final circulating supply of 20 million tokens and an initial daily volume of $100,000, we will need to design a tokenomics model based on the following assumptions and calculations.

  • Assumptions:

    • Initial Token Price: $0.20

    • Initial Circulating Supply: 70 billion tokens (since 30 billion tokens are staked and locked out of circulation)

    • Target Circulating Supply: 20 million tokens by the end of 24 months

    • Daily Trading Volume: $100,000

    • Burn Mechanism: A percentage of daily transactions will be burned to reduce the circulating supply.

    • Volume Growth: To sustain the burn, we assume a 5% monthly growth in trading volume due to marketing, utility development, and staking incentives.

  • Path to Achieve $1 Token Price:

    We will focus on two mechanisms:

    • Token Burn: A burn mechanism that decreases the circulating supply significantly over 24 months.

    • Increased Demand and Utility: Growth in trading volume will help maintain the price as the circulating supply decreases

  • Formula and Approach:

    • Market Cap Formula:

      • Market Cap = Circulating Supply × Token Price

      • To reach a $1 price, the market cap needs to increase significantly while the circulating supply is drastically reduced.

    • Burn Mechanism:

      • The goal is to burn tokens over 24 months to reduce the circulating supply to 20 million.\

      • We’ll need a progressive burn rate that accelerates over time to maintain price momentum.

    • Price Estimation:

      • As the circulating supply decreases and the burn accelerates, the price will rise in response to scarcity, assuming demand is constant or increasing.

  • Estimated Monthly Burn and Circulating Supply Reduction: Here’s an estimated token burn schedule with a 5% increase in trading volume per month and a burn rate applied progressively to reach the goal of 20 million tokens in circulation by the end of 24 months.

  • Analysis of Burn and Price Growth:

    • Circulating Supply Reduction: Through an aggressive burn rate that progressively increases from 3% to 7%, we are able to reduce the circulating supply from 70 billion to 20 million over 24 months.

    • Token Price: As the circulating supply reduces, the token price increases in response. By the 24th month, the price reaches $1 due to the scarcity created by the burn.

    • Market Cap: At the end of 24 months, the market cap stabilizes at around $20 million, which is proportional to the circulating supply and the $1 token price.

Last updated