Post
Topic
Re: [ANN][POWR][UPDATE] *** POWER LEDGER TOKEN SALE STARTS FRIDAY 8TH SEPTEMBER ***
by
krypto5
on 21/11/2017, 15:01:13 UTC

300K each BTC might be in the year 2025. The value of POWR in 2025 might be under 5 Cents. It is just a Token. I am here also since the beginning and I can tell you one Thing. You are comparing Coins with Tokens, LTC is a coin with his own Technology, POWR and the most other PnD are just Tokens which every one can create. You need just 5 minutes, zero skills and you can create a Token. Than put it in a good real life scenario and you can make a nice pump. Just my opinion. I think that over 90% off all Token project will fail and people will losse much money.

It has nothing to do with the fact that I like BTC. I am also investing in other Alts, but only on good TECH not in Tokens.


Economic structure of crypto tokens

When we view crypto tokens akin to stock in a corporation for valuation purposes, we can begin to apply some of the economic characteristics of the latter to the former. For a crypto token holder, the value of the token comes from three primary sources, just like a regular stock:

    Dividends
    Buybacks
    Price appreciation.

Let’s discuss the price appreciation component first. This is present in many crypto tokens, and is driven by adoption (note that this is different from speculative price appreciation). In this case, the entire economic value of the ecosystem is modeled based on economic assumptions, and then divided among the token holders. Many application-specific crypto tokens belong to this category.

Take the example of decentralized storage startup Storj Labs. Its tokens don’t pay any dividends, and there isn’t a concept of buyback. However, if the protocol is widely adopted, the value of Storj tokens is expected to increase.

A simple valuation in this case would be to model the size of the market that Storj can represent and divide it by the total number of tokens in existence.

Some of the more recent projects have a cash-flow component (earned income) in addition to the adoption-based price appreciation. This is similar to corporations making a profit, and using that profit to grow the business via retained earnings. The ‘excess’ profit is then distributed to shareholders in the form of stock buybacks (increase the percentage ownership of each share of the company) and dividends (provide a cash distribution to beneficial owners of each share).

https://www.coindesk.com/framework-valuing-crypto-tokens/


What is the Economic structure for POWR-tokens?



(Offtopic: Can you mention few good TECHs besides BTC?)