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Tokenomics Dilution Calculator: Step-by-Step Guide

Calculate token dilution manually

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Покрокові інструкції

1

Gather Your Inputs

First, identify the total tokens to be vested (T), the vesting percentage (V), and the current token supply (C). Make sure to convert the vesting percentage to a decimal by dividing by 100.

2

Apply the Formula

Next, plug in the numbers into the formula: D = (T x V) / (C + (T x V)). Make sure to follow the order of operations (PEMDAS) and calculate the numerator and denominator separately before dividing.

3

Calculate the Dilution Factor

Once you have plugged in the numbers, calculate the dilution factor (D) by dividing the numerator by the denominator. This will give you the percentage increase in token supply due to the vesting schedule.

4

Avoid Common Mistakes

Common mistakes to avoid include using the wrong units for the vesting percentage (make sure to convert to a decimal), and not following the order of operations. Double-check your calculations to ensure accuracy.

5

Use the Calculator for Convenience

While it's possible to calculate token dilution manually, it's often more convenient to use a calculator or spreadsheet to perform the calculation. This can save time and reduce the risk of errors.

6

Interpret the Results

Finally, interpret the results of the calculation to understand the impact of the vesting schedule on the token price and supply. A higher dilution factor indicates a greater increase in token supply, which can potentially impact the token price.

Introduction to Tokenomics Dilution Calculator

The Tokenomics Dilution Calculator is a tool used to estimate the impact of a vesting schedule on the token price and supply. In this guide, we will walk you through the step-by-step process of calculating token dilution manually.

Understanding the Formula

The formula for calculating token dilution is:

D = (T x V) / (C + (T x V))

Where:

  • D = Dilution factor
  • T = Total tokens to be vested
  • V = Vesting percentage (as a decimal)
  • C = Current token supply

Worked Example

Let's say we have a token with a current supply of 10 million tokens, and a vesting schedule that releases 2 million tokens over the next year, with a vesting percentage of 25% per quarter. To calculate the dilution factor, we would use the following numbers:

  • T = 2,000,000 tokens
  • V = 0.25 (25% as a decimal)
  • C = 10,000,000 tokens

Plugging these numbers into the formula, we get:

D = (2,000,000 x 0.25) / (10,000,000 + (2,000,000 x 0.25)) D = 500,000 / (10,000,000 + 500,000) D = 500,000 / 10,500,000 D = 0.0476

This means that the token supply will increase by approximately 4.76% due to the vesting schedule.

Steps to Calculate Tokenomics Dilution

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