Economics

Token Valuation Alpha Release

Quantity Theory of Money

The most widely used valuation methodology for tokens is the quantity theory of money or, more precisely, the equation of exchange. Several models based on those principles have been developed and commonly accepted by the cryptocurrency community.

In a nutshell, the equation MV = PT relates to the price level and the quantity of money. The quantity equation is the basis for the quantity theory of money.

Find more details: Working Paper