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Network Token Variables

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Overview​

This document identifies all variables required to model DIG token price dynamics based on network activities that lock collateral. The model must balance sufficient liquidity for network growth while allowing token value appreciation through supply constraints.

Core Supply Variables​

Fixed Supply Parameters​

  • TOTAL_SUPPLY: 25,000,000 DIG (fixed)
  • EMISSION_PERIOD_YEARS: 15 years
  • ANNUAL_EMISSION_RATE: TOTAL_SUPPLY / EMISSION_PERIOD_YEARS = 1,666,667 DIG/year
  • DAILY_EMISSION_RATE: ANNUAL_EMISSION_RATE / 365 = 4,566 DIG/day

Distribution Allocations​

  • PROTOCOL_REWARDS_ALLOCATION: 12,500,000 DIG (50%)
  • INVESTOR_ALLOCATION: 7,500,000 DIG (30%)
  • EARLY_SUPPORTERS_ALLOCATION: 1,250,000 DIG (5%)
  • LIQUIDITY_POOL_ALLOCATION: 1,250,000 DIG (5%)
  • DEVELOPER_FUND_ALLOCATION: 1,250,000 DIG (5%)
  • FOUNDER_FUND_ALLOCATION: 1,250,000 DIG (5%)

Circulating Supply Variables​

  • CURRENT_YEAR: Year since token launch (0-15)
  • TOKENS_VESTED: CURRENT_YEAR * ANNUAL_EMISSION_RATE
  • TOKENS_IN_CIRCULATION: MIN(TOKENS_VESTED, TOTAL_SUPPLY)
  • TOKENS_LOCKED_IN_CONTRACTS: Sum of all locked tokens (see below)
  • LIQUID_SUPPLY: TOKENS_IN_CIRCULATION - TOKENS_LOCKED_IN_CONTRACTS

DIG Handle Registration Variables​

Pricing Tiers (Illustrative - TBD)​

  • HANDLE_PRICE_3_CHAR: 5000 DIG
  • HANDLE_PRICE_4_CHAR: 1000 DIG
  • HANDLE_PRICE_5_CHAR: 200 DIG
  • HANDLE_PRICE_6_CHAR: 40 DIG
  • HANDLE_PRICE_7_CHAR: 8 DIG
  • HANDLE_PRICE_8PLUS_CHAR: 1 DIG

Handle Demand Variables​

  • HANDLES_REGISTERED_3_CHAR: Count of 3-character handles
  • HANDLES_REGISTERED_4_CHAR: Count of 4-character handles
  • HANDLES_REGISTERED_5_CHAR: Count of 5-character handles
  • HANDLES_REGISTERED_6_CHAR: Count of 6-character handles
  • HANDLES_REGISTERED_7_CHAR: Count of 7-character handles
  • HANDLES_REGISTERED_8PLUS_CHAR: Count of 8+ character handles
  • TOTAL_HANDLES_REGISTERED: Sum of all handle registrations
  • HANDLE_RENEWAL_RATE: Percentage of handles renewed annually
  • HANDLE_GROWTH_RATE: Monthly/annual growth in new registrations

Handle Token Lock​

  • TOKENS_SPENT_ON_HANDLES: Permanent burn/treasury allocation
  • TOKENS_SPENT_ON_HANDLES_TOTAL: Σ(HANDLE_PRICE_N * HANDLES_REGISTERED_N)

CapsuleStakeCoin Variables​

Collateral Requirements (Illustrative - TBD)​

  • CAPSULE_COLLATERAL_256KB: 64 DIG
  • CAPSULE_COLLATERAL_1MB: 256 DIG
  • CAPSULE_COLLATERAL_10MB: 1024 DIG
  • CAPSULE_COLLATERAL_100MB: 4096 DIG
  • CAPSULE_COLLATERAL_1000MB: 16384 DIG

CapsuleStakeCoin Activity​

  • ACTIVE_CAPSULESTAKECOINS_256KB: Count of active 256KB capsules
  • ACTIVE_CAPSULESTAKECOINS_1MB: Count of active 1MB capsules
  • ACTIVE_CAPSULESTAKECOINS_10MB: Count of active 10MB capsules
  • ACTIVE_CAPSULESTAKECOINS_100MB: Count of active 100MB capsules
  • ACTIVE_CAPSULESTAKECOINS_1000MB: Count of active 1GB capsules
  • CAPSULESTAKECOIN_CREATION_RATE: New capsules per day/month
  • CAPSULESTAKECOIN_MELT_RATE: Capsules melted per day/month
  • AVERAGE_CAPSULE_LIFETIME: Average duration before melting

CapsuleStakeCoin Token Lock​

  • TOKENS_LOCKED_IN_CAPSULESTAKECOINS: Sum of all active collateral
  • TOKENS_LOCKED_IN_CAPSULESTAKECOINS_TOTAL: Σ(CAPSULE_COLLATERAL_N * ACTIVE_CAPSULESTAKECOINS_N)

PlotCoin Variables​

Staking Requirements (TBD)​

  • PLOTCOIN_MIN_STAKE: Minimum DIG stake per PlotCoin
  • PLOTCOIN_STAKE_PER_CAPSULE: DIG required per capsule stored
  • PLOTCOIN_LOCKUP_PERIOD: Duration tokens are locked (if any)

PlotCoin Network Activity​

  • ACTIVE_PLOTCOINS: Total number of active PlotCoins
  • PLOTCOIN_CREATION_RATE: New PlotCoins per day/month
  • PLOTCOIN_MELT_RATE: PlotCoins melted per day/month
  • AVERAGE_PLOTCOIN_LIFETIME: Average duration before melting
  • STORAGE_PROVIDERS_COUNT: Number of unique storage providers
  • AVERAGE_PLOTCOINS_PER_PROVIDER: Network distribution metric

PlotCoin Token Lock​

  • TOKENS_LOCKED_IN_PLOTCOINS: Total DIG staked in PlotCoins
  • TOKENS_LOCKED_IN_PLOTCOINS_TOTAL: PLOTCOIN_MIN_STAKE * ACTIVE_PLOTCOINS

WitnessCoin Variables​

Witness Staking Requirements (TBD)​

  • WITNESS_MIN_STAKE: Minimum DIG stake to become witness
  • WITNESS_LOCKUP_PERIOD: 7 days (specified in docs)
  • WITNESS_SLASH_RATE: Percentage slashed for misbehavior

Witness Network Activity​

  • ACTIVE_WITNESSES: Number of active witness miners
  • WITNESS_JOIN_RATE: New witnesses per day/month
  • WITNESS_LEAVE_RATE: Witnesses exiting per day/month
  • WITNESSCOINS_CREATED_PER_EPOCH: Average validations per epoch
  • VALIDATION_SUCCESS_RATE: Percentage of successful validations

Witness Token Lock​

  • TOKENS_LOCKED_BY_WITNESSES: Total DIG staked by witnesses
  • TOKENS_LOCKED_BY_WITNESSES_TOTAL: WITNESS_MIN_STAKE * ACTIVE_WITNESSES

Network Growth Variables​

Adoption Metrics​

  • DATASTORES_CREATED: Total DataStores on network
  • DATASTORE_GROWTH_RATE: New DataStores per month
  • TOTAL_DATA_STORED_GB: Total network storage utilization
  • DATA_GROWTH_RATE_GB: Monthly storage growth
  • RETRIEVAL_REQUESTS_PER_DAY: Network usage metric

Market Variables​

  • DIG_TOKEN_PRICE_USD: Current market price
  • MARKET_CAP: DIG_TOKEN_PRICE_USD * TOKENS_IN_CIRCULATION
  • DAILY_TRADING_VOLUME: Liquidity metric
  • LIQUIDITY_POOL_DEPTH: Available trading liquidity

Reward Distribution Variables​

Epoch Rewards​

  • EPOCH_DURATION_BLOCKS: 37,800 blocks (~7 days)
  • REWARDS_PER_EPOCH: Protocol rewards distributed per epoch
  • DIG_NODE_REWARD_SHARE: Percentage to storage providers (TBD)
  • WITNESS_REWARD_SHARE: Percentage to witnesses (TBD)
  • VALIDATOR_FEE_SHARE: Percentage to validators (TBD)

Reward Multipliers​

  • HANDLE_TIER_MULTIPLIERS: Map of handle length to multiplier
    • 3 characters: 5x
    • 4 characters: 4x
    • 5 characters: 3x
    • 6 characters: 2x
    • 7 characters: 1.5x
    • 8+ characters: 1x
  • CAPSULE_SIZE_MULTIPLIERS: Map of capsule size to multiplier
    • 256KB: 1x
    • 1MB: 1.2x
    • 10MB: 1.5x
    • 100MB: 2x
    • 1GB: 3x

Economic Model Equations​

Total Token Lock​

TOTAL_TOKENS_LOCKED = 
  TOKENS_LOCKED_IN_CAPSULESTAKECOINS +
  TOKENS_LOCKED_IN_PLOTCOINS +
  TOKENS_LOCKED_BY_WITNESSES

Liquid Supply Ratio​

LIQUIDITY_RATIO = LIQUID_SUPPLY / TOKENS_IN_CIRCULATION

Network Value Lock Ratio​

VALUE_LOCK_RATIO = TOTAL_TOKENS_LOCKED / TOKENS_IN_CIRCULATION

Supply Shock Potential​

SUPPLY_SHOCK_FACTOR = 1 / LIQUIDITY_RATIO

Token Velocity​

TOKEN_VELOCITY = DAILY_TRADING_VOLUME / LIQUID_SUPPLY

Critical Constraints for Model​

Minimum Liquidity Requirements​

  • MIN_LIQUIDITY_RATIO: 0.2 (20% must remain liquid)
  • MAX_VALUE_LOCK_RATIO: 0.8 (80% maximum locked)
  • LIQUIDITY_BUFFER: Safety margin for market operations

Growth Sustainability Metrics​

  • TOKENS_REQUIRED_PER_TB: Total DIG needed per TB of data
  • MAX_NETWORK_SIZE_AT_CURRENT_SUPPLY: Maximum data given token constraints
  • YEARS_TO_LIQUIDITY_CRISIS: When growth exhausts liquid supply

Model Calibration Variables​

Adjustable Parameters​

  • All collateral requirements (currently TBD)
  • Staking minimums for PlotCoins and WitnessCoins
  • Reward distribution percentages
  • Handle pricing tiers

External Factors​

  • CRYPTO_MARKET_SENTIMENT: Bull/bear market multiplier
  • DEFI_ADOPTION_RATE: DeFi frontend migration speed
  • REGULATORY_IMPACT_FACTOR: Positive/negative regulatory effects
  • COMPETITOR_MARKET_SHARE: Impact of alternative solutions

Implementation Notes​

Data Collection Requirements​

  1. On-chain metrics via blockchain indexing
  2. Market data from exchanges and DEXs
  3. Network growth from DIG Node telemetry
  4. User behavior from DIGHub analytics

Model Update Frequency​

  • Real-time: Token price, trading volume
  • Hourly: Token lock totals, network activity
  • Daily: Growth rates, new registrations
  • Weekly: Reward distributions, epoch metrics
  • Monthly: Trend analysis, parameter adjustments

Scenario Analysis Variables​

  • BULL_CASE_GROWTH_MULTIPLIER: 3-5x baseline
  • BASE_CASE_GROWTH_MULTIPLIER: 1x baseline
  • BEAR_CASE_GROWTH_MULTIPLIER: 0.3-0.5x baseline
  • BLACK_SWAN_EVENT_IMPACT: -50% to -90% temporary shock

Summary​

The token price model must balance:

  1. Sufficient liquidity for new users and network growth
  2. Value appreciation through supply constraints
  3. Sustainable economics preventing liquidity crises
  4. Market dynamics responding to adoption and usage

Key insight: With fixed supply and multiple locking mechanisms, the model must carefully calibrate initial parameters to ensure the network can grow to its full potential without exhausting liquid token supply.