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1. Baseline Revenue Calculation
This model estimates network fees from transactions, smart contracts, and data storage.
Key Variables
TPS
Transactions per second
TVD
Total Value Daily (USD)
AvgFee
Average transaction fee (USD)
Days
365 (for annualization)
Primary Formula
R = TPS × 86,400 × AvgFee × Days
Where 86,400 is the number of seconds in a day.
Step-by-Step Calculation
Step 1: Calculate daily transactions
DailyTx = TPS × 86,400
Step 2: Calculate daily revenue
DailyRev = DailyTx × AvgFee
Step 3: Annualize the revenue
R = DailyRev × 365
Hybrid Model (TPS + TVD)
For a more balanced approach combining fixed and value-based fees:
R_hybrid = 0.7 × R_TPS + 0.3 × R_TVD
Where R_TVD = TVD × 0.001 × Days (assuming 0.1% fee rate)
2. Reflexive Value Accrual: Buyback and Burn
This mechanism creates deflationary pressure by using fees to buy back and burn EGLD tokens.
Key Variables
FeeAllocation
Percentage of revenue for buybacks (proposed: 50%)
EGLD_Price
Current EGLD price in USD
CircSupply
Circulating supply of EGLD
BuybackVol
Annual buyback volume in USD
Buyback and Burn Formulas
BuybackVol = FeeAllocation × R
BurnRate = BuybackVol / EGLD_Price
DeflationFactor = (BurnRate / CircSupply) × 100%
Supply and Price Impact
NewSupply = CircSupply × (1 - (BurnRate / CircSupply))
PriceImpact = (InitialPrice × CircSupply) / NewSupply
Assuming constant market capitalization, price increases inversely with supply reduction.
3. Staking Rewards and Validator Incentives
This section calculates how fees fund staking rewards and validator operations.
Key Variables
RewardPool
Annual rewards allocation (30% of R)
StakedSupply
Amount of EGLD staked
APY
Annual Percentage Yield for stakers
ValidatorShare
Validator operations allocation (20% of R)
Staking Reward Formulas
RewardPool = 0.3 × R
APY = [RewardPool / (StakedSupply × EGLD_Price)] × 100%
Validator Economics
ValidatorYield = (0.2 × R) / (NumValidators × AvgStake)
Net Inflation Calculation
NetInflation = (RewardPool / CircSupply) - BurnRate
Positive values indicate net inflation, negative values indicate net deflation.
Interactive Economic Model Calculator
Adjust the parameters below to see how they affect the MultiversX economic model.
Economic Model Results
Annual Revenue
$0
From network fees
Annual Buybacks
0 EGLD
Tokens to be burned
Annual Deflation
0%
Supply reduction
Staking APY
0%
Annual yield