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.
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