On Design of Tokenomics: PoW Cryptocurrencies, De-Fi Tokens, and XDEX

1. On Inflation and Ecosystem Evolvement

1.1 Inflation As Equity Private Placement For Service Providers

2. On Service Providing Eigenperiods And Vesting

Duration: The weighted average term to maturity of the cash flows, which is also the sensitivity of PV of cash flows according to the yield rate (risk-free rate, or internal rate of return, or opportunity cost).

3. Valuation model and token empowerment match — DCF Model, PE, PEG

Value investing: An investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. Intrinsic value is from the ability to generate persistent (or growing) cash flows in goods and services. Book value is mainly from assets that can be put back into manufacturing.

  • Liquidity efficiency (Turnover Ratio): Average daily transaction volume/TVL
  • Fees: Trading Cost/Trading Volume
  • Average Profitability: TVL* Liquidity Efficiency * Fees
  • Mktcap/TVL: Market value relative to TVL
  • P/E = Mktcap/Earnings = Mktcap/TVL / average daily turnover rate / rate

4. How xDeFiLabs designed the XDEX token economic model

4.1 Balance Benefits Between Several Groups

  • Set fee to 0.25% for most influential pools
  • Consider TVL as one of the most important indicators when performing go-to-market strategies.

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