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Governance Token Examples

Examples Early Adoption#

The geometrically decaying avaiability of governance tokens combined with a potential growth rate of minted amounts makes early addoption of the platform particularly rewarding.

YOU Token Availability AggregatedYOU Token Availability Per Week

Early Adoption YOU Token Claims#

  1. We start with the following assumptions:
    • We do all calculations in monthly periods, we ignore the platform's intra-month calculations and changes in values.
    • Each month is 30.33 days in order to not have to accound for different number of days per month and to have a 364 day (=52 weeks) year. This simplifies the calculations without creating material differences.
    • The minted amount on the platform starts at uUSD 200,000 and grows for 20% per month until the end of month 36.
    • Minter a mints uUSD 20,000 for 9 months from month 3 until month 11 and claims his share of YOU governance tokens.
    • Minter b mints uUSD 1,000,000, an amount 50 times higher than minter a, for 9 months, from month 26 until month 34 and claims his share of YOU governance tokens.
  2. The governance tokens available for claim per second half after 52 weeks (364 days, almost a year). So a given share, say 5%, of the overall minted amount will result in only half of the claimable YOU tokens.
  3. The growth rate in the minted amounts, and also the decrease in YOU tokens available for claim, result in a remarkably smaller stake of YOU tokens for minter b, despite the 50 times higher capital investment.

Given the above assumptions on growth on the platform, the required amount of minted uUSDs to be able to claim 1 YOU token is increasing exponentially.

Required Minted AmountsRequired Minted Amounts Log Scale

Minter b is starting to mint much later than minter a, however, the minted amount is significantly higher.

Minted Amounts

Minter a ends up with a significantly higher amount of YOU tokens.

Aggregated YOU Tokens Owned

IN percentage of the total amount of YOU tokens available at the time, the picture is even more in favour of minter a.

Aggregated YOU Tokens %age Owned

Early Adoption Profit Share#

  1. We start with the following assumptions:
    • We continue on the same example, so the assumptions from the YOU token claims example above are still valid.
    • There is a churn of 1% per month in the minted amounts, leading to additional minting fees on the churned amounts.
    • The annual interest rate difference is 1.50%, per month difference is roughly 0.12%.
    • There is no activation of the stability mechanism during the 36 months period.
  2. As in the earlier example above, minter a's early participation in minting leads to a relatively high amount of YOU tokens in its posession early on.
  3. As a consequence, minter a can benefit from a relatively high ongoing participation in the profit share of the platform through the stability mechanism.
  4. Minter b, despite its high minting amount never manages to catch up with minter a.

When only looking at the profit claims, it can be seen how minter a is significantly ahead of minter b, both on a total basis and also on a per period basis.

Platform FeesProfit Claims Per MonthProfit Claims Aggregated

One Year Profit Share Values#

  1. We start with the following assumptions:
    • We continue on the same example, but we extend the timeline out to 48 months using the same parameters as before.
    • As a consequence the minted amounts grow up to 1.05bn in month 48.
  2. Model choice:
    • All theoretical cash flow valuation examples are heavily dependent on the assumptions, but some less so than others.
    • A discounted cash flow model would be particularly sensitive to even small changes in growth parameters.
    • We look at the simple sum of cash flows over one year, ignoring time value of money or discount rates.
  3. Given these assumptions, we can calculate the following values:
    • A projected level of fees per month.
    • A projected level of fees per month per YOU token.
    • In each month the sum of the current and the 11 consecutive projected levels of fees per month per YOU token .
  4. The latter can serve as a rough indication of how a fundamental value of a YOU token might be constructed.
  5. These assumptions contain a lot of guess work. However, one of the crucial points is that given most reasonable assumptions of input parameters and using a discounted cash flow framework, the value of a YOU token is not zero.
Monthly FeesMonthly Fees per YOUProfit Claims

Data Tables#

Early Adoption YOU Token Claims#

monthtotal mintedminted amount aminted% a#YOU claim atotal number of YOU owned by minter atotal YOU% aminted amount bminted% user b#YOU claim btotal number of YOU owned by minter btotal YOU% bYOU for claimtotal YOU
1200,000.00-0.00%--0.00%-0.00%--0.00%195,000.00195,000.00
2240,000.00-0.00%--0.00%-0.00%--0.00%195,000.00390,000.00
3288,000.0020,000.006.94%12,037.0412,037.042.06%-0.00%--0.00%195,000.00585,000.00
4345,600.0020,000.005.79%10,030.8622,067.902.83%-0.00%--0.00%195,000.00780,000.00
5414,720.0020,000.004.82%8,359.0530,426.953.12%-0.00%--0.00%195,000.00975,000.00
6497,664.0020,000.004.02%6,965.8837,392.833.20%-0.00%--0.00%195,000.001,170,000.00
7597,196.8020,000.003.35%5,804.9043,197.733.16%-0.00%--0.00%195,000.001,365,000.00
8716,636.1620,000.002.79%4,837.4248,035.153.08%-0.00%--0.00%195,000.001,560,000.00
9859,963.3920,000.002.33%4,031.1852,066.332.97%-0.00%--0.00%195,000.001,755,000.00
101,031,956.0720,000.001.94%3,359.3255,425.642.84%-0.00%--0.00%195,000.001,950,000.00
111,238,347.2820,000.001.62%2,799.4358,225.072.71%-0.00%--0.00%195,000.002,145,000.00
121,486,016.74-0.00%-58,225.072.49%-0.00%--0.00%195,000.002,340,000.00
131,783,220.09-0.00%-58,225.072.39%-0.00%--0.00%97,500.002,437,500.00
142,139,864.11-0.00%-58,225.072.30%-0.00%--0.00%97,500.002,535,000.00
152,567,836.93-0.00%-58,225.072.21%-0.00%--0.00%97,500.002,632,500.00
163,081,404.31-0.00%-58,225.072.13%-0.00%--0.00%97,500.002,730,000.00
173,697,685.18-0.00%-58,225.072.06%-0.00%--0.00%97,500.002,827,500.00
184,437,222.21-0.00%-58,225.071.99%-0.00%--0.00%97,500.002,925,000.00
195,324,666.66-0.00%-58,225.071.93%-0.00%--0.00%97,500.003,022,500.00
206,389,599.99-0.00%-58,225.071.87%-0.00%--0.00%97,500.003,120,000.00
217,667,519.98-0.00%-58,225.071.81%-0.00%--0.00%97,500.003,217,500.00
229,201,023.98-0.00%-58,225.071.76%-0.00%--0.00%97,500.003,315,000.00
2311,041,228.78-0.00%-58,225.071.71%-0.00%--0.00%97,500.003,412,500.00
2413,249,474.53-0.00%-58,225.071.66%-0.00%--0.00%97,500.003,510,000.00
2515,899,369.44-0.00%-58,225.071.64%-0.00%--0.00%48,750.003,558,750.00
2619,079,243.33-0.00%-58,225.071.61%1,000,000.005.24%2,271.232,271.230.06%48,750.003,607,500.00
2722,895,091.99-0.00%-58,225.071.59%1,000,000.004.37%1,892.694,163.920.11%48,750.003,656,250.00
2827,474,110.39-0.00%-58,225.071.57%1,000,000.003.64%1,577.245,741.160.15%48,750.003,705,000.00
2932,968,932.47-0.00%-58,225.071.55%1,000,000.003.03%1,314.377,055.530.19%48,750.003,753,750.00
3039,562,718.97-0.00%-58,225.071.53%1,000,000.002.53%1,095.318,150.840.21%48,750.003,802,500.00
3147,475,262.76-0.00%-58,225.071.51%1,000,000.002.11%912.769,063.590.24%48,750.003,851,250.00
3256,970,315.31-0.00%-58,225.071.49%1,000,000.001.76%760.639,824.220.25%48,750.003,900,000.00
3368,364,378.37-0.00%-58,225.071.47%1,000,000.001.46%633.8610,458.080.26%48,750.003,948,750.00
3482,037,254.05-0.00%-58,225.071.46%1,000,000.001.22%528.2210,986.300.27%48,750.003,997,500.00
3598,444,704.86-0.00%-58,225.071.44%-0.00%-10,986.300.27%48,750.004,046,250.00
36118,133,645.83-0.00%-58,225.071.42%-0.00%-10,986.300.27%48,750.004,095,000.00

Early Adoption Profit Share#

monthper month minting feesper month interest rate feesper month total feesper month claim aper month claim baggregate profit claim aaggregate profit claim b
13,125.00248.303,373.30----
2656.25297.96954.21----
3787.50357.551,145.0523.56-23.56-
4945.00429.061,374.0638.88-62.44-
51,134.00514.871,648.8751.46-113.89-
61,360.80617.841,978.6463.24-177.13-
71,632.96741.412,374.3775.14-252.27-
81,959.55889.692,849.2587.73-340.00-
92,351.461,067.633,419.10101.44-441.44-
102,821.751,281.164,102.92116.62-558.06-
113,386.111,537.394,923.50133.65-691.70-
124,063.331,844.875,908.20147.01-838.72-
134,875.992,213.857,089.84169.36-1,008.07-
145,851.192,656.628,507.81195.41-1,203.48-
157,021.433,187.9410,209.37225.81-1,429.29-
168,425.713,825.5312,251.24261.29-1,690.58-
1710,110.864,590.6314,701.49302.74-1,993.32-
1812,133.035,508.7617,641.79351.18-2,344.50-
1914,559.646,610.5121,170.14407.82-2,752.32-
2017,471.567,932.6125,404.17474.09-3,226.41-
2120,965.879,519.1330,485.01551.67-3,778.08-
2225,159.0511,422.9636,582.01642.53-4,420.61-
2330,190.8613,707.5543,898.41749.01-5,169.62-
2436,229.0316,449.0652,678.09873.84-6,043.46-
2543,474.8419,738.8763,213.711,034.25-7,077.70-
2652,169.8123,686.6575,856.451,224.3247.768,302.0347.76
2762,603.7728,423.9891,027.741,449.60103.679,751.63151.43
2875,124.5234,108.77109,233.291,716.63169.2611,468.26320.69
2990,149.4240,930.52131,079.952,033.20246.3813,501.46567.07
30108,179.3149,116.63157,295.942,408.56337.1715,910.03904.24
31129,815.1758,939.96188,755.132,853.69444.2218,763.721,348.46
32155,778.2170,727.95226,506.153,381.62570.5822,145.341,919.03
33186,933.8584,873.54271,807.384,007.85719.8726,153.192,638.90
34224,320.62101,848.24326,168.864,750.77896.4130,903.973,535.31
35269,184.74122,217.89391,402.635,632.241,062.7336,536.204,598.04
36323,021.69146,661.47469,683.166,678.231,260.0943,214.435,858.13