removed initial cost, spelling

This commit is contained in:
Corey 2019-05-31 15:37:10 -04:00
parent 99f5bb75a0
commit 14dfef42be
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GPG Key ID: 65CAB2A922CDF343
12 changed files with 1388 additions and 294 deletions

1
.gitignore vendored
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@ -23,3 +23,4 @@ package-lock.json
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View File

@ -80,25 +80,26 @@ class App extends Component {
</p>
<p>
These questions are hard, and there does not seem to be sufficient
academic answers to them, for very good reasons. The technology
enabling a utility token is new, and transcendent of many older
technologies. This consequently means the models used to evaluate the
older technologies will never be able to completely describe the newer
ones. We, as a community, need to build new ones and evaluate them
rigorously.
academic answers to them. The technology enabling a utility token is
new, and transcendent of many older technologies. This consequently
means the models used to evaluate the older technologies will never be
able to completely describe the newer ones. We, as a community, need
to build new ones and evaluate them rigorously.
</p>
<p>
There is currently quite a bit of work being done in this field, but
it is mostly for investment firms to make appropriate capital
allocation decisions among a diversified portfolio of cryptoassets.
While this is drastically important for growth and project funding,
there is great lack of research on capital and resource allocation
inside of a single network. More specifically, any utility token needs
to be able to objectively evaluate various features and utilities of
their platform, and how they affect the entirety of their ecosystem.
For instance, we need to be able to ask questions like the following:
How can we objectively measure the difference in the rate users use
feature X in Status and its respective impact on the ecosystem?
there is a lack of research on capital and resource allocation inside
of a single network. More specifically, any utility token needs to be
able to objectively evaluate various features and utilities of their
platform, and how they affect their ecosystem. For instance, we need
to be able to ask questions like:
<em>
How can we objectively measure the difference in the rate users use
feature X in Status and its respective impact on the ecosystem?
</em>
</p>
<p>
We will be launching Status with the following SNT use-cases, as
@ -111,14 +112,14 @@ class App extends Component {
<li>ENS Usernames</li>
<li>Sticker Market</li>
<li>SNT Curated Dapp Store</li>
<li>Network Incentivization (may not be available at launch)</li>
<li>Liquid Funding (may not be avaialble at launch)</li>
<li>User Acquisition Engine (will not be available at launch)</li>
<li>Liquid Funding (may not be available at launch)</li>
<li>Network Incentivization (launching after V1)</li>
<li>User Acquisition Engine (launching after V1)</li>
</ul>
</p>
<p>
Each of these use-cases leverage the SNT token, but in very different
ways. For instance, some will lock up large amounts, some will
Each of these features leverage the SNT token, but in very different
ways. For instance, some features will require staking, some will
actually burn the token, and some will incentivize sending and
receiving. This means each will have differing effects on the supply
and demand of the token itself, and will need to be modeled
@ -129,14 +130,14 @@ class App extends Component {
do we go to try and evaluate its usefulness?
</p>
<p>
To this end, we would like to start a blog series detailing some of
the research we are doing within Status to objectively evaluate the
value flows of SNT, the potential effects of our implemented (and
upcoming) SNT use cases within Status, and how our potential user
growth changes things. This work will encompass traditional economic
and finance theory, work currently being done in crypto-economics, and
novel methodology. That means a part of this endeavor is an attempt to
get peer review and evaluation of what we do by you, the community!
To this end, we are starting a blog series detailing some of the
research we are doing within Status to objectively evaluate the value
flows of SNT, the potential effects of our implemented (and upcoming)
SNT use cases within Status, and how our potential user growth impacts
SNT. This work will encompass traditional economic and finance theory,
work currently being done in crypto-economics, and novel methodology.
That means a part of this endeavor is an attempt to get peer review
and evaluation of what we do by you, the community!
</p>
<p>
<b>
@ -218,7 +219,7 @@ class App extends Component {
manually release their SNT from the ENS username contract, it can be
considered locked forever. For this, we will continue to consider them
users because from the contract&apos;s perspective, they are
indestiguishable. Well model the people who release their username
indistinguishable. Well model the people who release their username
with another conversion factor. Go ahead and change these variables
and see how the following graph changes.
</p>
@ -263,24 +264,27 @@ class App extends Component {
use to figure out how much present value a known future cash flow is
worth. In other words, how to presently evaluate the amount of money
you know will come in the future. Once you have the discount rate, you
can calculate the <em>Net Present Value</em>, which is given by the
following formula:
can calculate the <em>Net Present Value</em> (NPV), which is given by
the following formula:
</p>
<p>
<Latex displayMode>
{
'$$NPV = \\sum^n_{t=1} \\frac{R_t}{(1+i)^t} - \\text{initial cost}$$'
}
{'$$NPV = \\sum^n_{t=1} \\frac{R_t}{(1+i)^t}$$'}
</Latex>
</p>
<p>
where <Latex>$$t$$</Latex> is the number of time periods (10 in this
article),
<Latex>$$R_t$$</Latex>
is the cashflow of that particular time period , and{' '}
<Latex>$$i$$</Latex> is the discount rate. The concept of discounting
future value has been around for along time. The earliest known
reference was in the 6th century BCE{' '}
is the net cashflow of that particular time period , and{' '}
<Latex>$$i$$</Latex> is the discount rate. There is also a potential
for including the initial cost (<Latex>$$t=0$$</Latex>) of the
project. We are purposely not including this as Status absorbs the
investment cost for the network. There are quite a few subtle
arguments here around things like hurdle rates, payback periods, etc,
but we defer them and their potential utility to a future article.
Anyway, the concept of discounting future value has been around for a
long time. The earliest known reference was in the 6th century BCE{' '}
<a href="http://www.aramaic-dem.org/English/History/The%20proverbs%20of%20the%20Aramean%20Ahikar.pdf">
Proverbs of Ahiqar
</a>
@ -310,8 +314,10 @@ class App extends Component {
<div ref={this.discountRateRef} />
<div ref={this.lockedUsdBarRef} />
<p>
and all of this gets summed together to give you the following Net
Present Value of ENS Usernames within Status:
and all of this gets summed together to give you the NPV of ENS
Usernames within Status. To be more explicit, the NPV is the present
value of something based on a projection into the future. Based on the
values chosen above, we arrive at an NPV of:
</p>
<div className="slide">
<div ref={this.netPresentUtilityRef} />
@ -322,7 +328,7 @@ class App extends Component {
usernames are in a single value. This value will become more useful as
we build out other models for other use cases so we can compare them
and see relative differences. Eventually, we will be able to see the
relatively impact a given utility within Status has within the entire
relative impact a given utility within Status has within the entire
ecosystem.
</p>
<h2>Example Scenario Analysis</h2>
@ -330,27 +336,26 @@ class App extends Component {
It is also useful to look at how this number changes as we tweak the
input variables to see their impact. As an example, let&apos;s look at
what happens if we are able to do something to increase the number
Status users who actualy register an ENS username (actually currently
in the works). This is an example of the question we postuated in the
Status users who actually register an ENS username (actually currently
in the works). This is an example of the question we postulated in the
beginning of this article. The default value is 50%, which leads to a
Net Present Utility Value of $8,527,197.00 (holding all default values
constant).
NPV of $8,577,197.00 (holding all default values constant).
</p>
<p>
What happens if we&apos;re able to increase this number, say, to 75%?
Keeping all other variables equal, this change alone changes the Net
Present Utility Value to $12,815,797.00, which is a 50.3% growth and
would constitute a linear relationship.
Keeping all other variables equal, this change alone changes the NPV
to $12,865,797.00, which is a 50.3% growth and would constitute a
linear relationship.
</p>
<p>
As another example, let&apos;s look at what happens if we increase our
yearly growth rate, going from 300% per year to 350% per year. holding
yearly growth rate, going from 300% per year to 350% per year. Holding
everything else constant, with a 350% growth rate per year, we come to
Net Present Utility Value of $24,157,021.00, a 183% growth and would
constitue a superlinear relatinoship due to the effects of compounding
growth. Based on these two simple examples, it is clear we should
spend more time on user acquisition and continuious growth over
increasing ENS username conversion rates (OR BOTH!).
NPV of $24,207,021.00 which is a 183% growth and would constitute a
superlinear relationship due to the effects of compounding growth.
Based on these two simple examples, it is clear we should spend more
time on user acquisition and continuous growth over increasing ENS
username conversion rates (OR BOTH!).
</p>
<p>
As you can see, by making models of our SNT use-cases, we can start to
@ -372,7 +377,9 @@ class App extends Component {
helps introduce the concept of how different variables affect growth
and impact over time. If you plan to follow this series and work, we
suggest making sure you understand each step along the way because all
of this can get complicated fast.
of this can get complicated fast. At the very least, we hope you have
been able to grasp a little of what goes on behind the scenes at
Status.
</p>
<p>
You have probably noticed that the default values for each variable is
@ -394,11 +401,13 @@ class App extends Component {
<a href="https://discuss.status.im">our discuss</a> and linking around
the internet in relevant places.
</p>
<h3>Future Improvements</h3>
<h3>Future Improvements and Articles</h3>
<ul>
<li>probability of failure</li>
<li>justifications using historical data</li>
<li>assign variables and create equations for each</li>
<li>discussion around initial cost, hurdle rates, payback periods</li>
<li />
</ul>
</div>
);