Accounting for Distributed Collectives

Relevant Reading

Treasury Foundations

Decred is many things:

  1. A money
  2. A high assurance accounting machine
  3. A distributed workforce aiming to build on points 1 & 2
  • Funding is limited: there are currently ~600,000 DCR in the Treasury balance and approximately 900,000 DCR remaining in Treasury issuance
  • Treasury funds are allocated by those with skin in the game, which in Decred’s case…


A Tool for Estimating Mining Costs

Relevant Reading

Rationale

Source: charts.woobull.com
  • The Difficulty Ribbon was an on-chain tool created by Willy Woo in order to track distress among Bitcoin miners
  • The Difficulty Ribbon consists of the (1) the network difficulty and (2) an assortment of moving averages of difficulty, with the 200 day moving average being the slowest-moving
  • Contractions in the Difficulty Ribbon have been historical signals for mining capitulation i.e. actual price is very close to the cost of mining


An Adjusted Look at the Realized Cap

Relevant Reading

Rationale

The two linked pieces above are components of the expanding documentation on Decred’s Realized Cap, one of the most powerful on-chain tools within the cryptocurrency space. Relevant information provided within these pieces are summarized below:

  • Realized Cap: Network value calculated by price at which UTXOs were last spent (as opposed to current exchange-traded price)
  • Realized Cap: On-chain cost basis of network participants
  • MVRV Ratio = Market Cap / Realized Cap
  • Decred’s Realized Cap is dynamic and moves closely with Market Cap
  • Decred’s Realized…


A Comparative Look at Decred and Bitcoin’s Realized Caps

Relevant Reading

Rationale

For those unfamiliar with the Realized Cap, please read the linked piece above as Checkmate did a rockstar job in formalizing the power behind the Realized Cap, how Bitcoin’s differs from Decred’s, and how this manifests itself in price action for each respective coin. For those more comfortable with the abbreviated version, a summary of relevant points surrounding the Realized Cap are included below:

  • Realized Cap: Network value calculated by price at which UTXOs were last spent (as opposed to current exchange-traded price)
  • Realized Cap: On-chain cost basis of network participants


An Exploration Into Block Times & Why They Matter

DECRED PULSE

Introduction

Decred has three groups of network stakeholders who leave consistent, on-chain footprints:

  • Contractors
  • Stakers
  • Miners

The author’s previous explorations…


A Tool for Tracking Implied Value Over Shorter Timeframes

DCR STRONG HAND

Previous Work + Takeaways

Decred’s on-chain data is wide-ranging and increasingly well documented. If the reader finds any issues understanding the discussion covering “The Strongest Hand Market Cap + Ratio”, it might be helpful to backtrack and digest other available pieces on relevant subject matter.

However, the abbreviated version of research and conclusions within the “Decred On-Chain” domain includes the following:

(1) Decred On-Chain: A Look at Block Subsidies

  • Public ledgers are digital entities that leverage block rewards to incentivize / bootstrap growth
  • Block rewards are fundamental to network valuation
  • Cost basis that flows within the proof…


Charts & On-Chain Analysis

Introduction

This piece aims to provide an array of charts displaying Decred on-chain data and give basic analysis on the state of the Decred network (and price’s relationship to the on-chain data).

By keeping charts and explanations simple, we can hopefully keep things digestible and easy to quickly look through. Furthermore, if there’s appetite for this type of publication again it’ll be substantially more manageable for myself (Permabull Nino) and other contributors to put it together more consistently.

Last of all — we seemed to have reached a point where the Decred On-Chain toolset is large enough that it merits discussing…


A Tool for Gauging User Sentiment

Introduction & Roadmap

On-chain analysis is a nascent and emerging field of study within the cryptocurrency space and within the ledger analysis space at large, which includes traditional work done by internal accountants, auditors, and consultants alike.

Among these ledger data specialists reigns one overarching principle: establish / identify economic truth via thorough research, and communicate findings in a digestible manner for outside parties to engage with.

The work of internal accountants / auditors emerges at various financial reporting deadlines, and consultants shine via their various deliverables to their clients.

Cryptocurrency on-chain analysts aim to establish and…


Tracking Accumulation & Capitulation Momentum On-Chain

Introduction / Roadmap

In previous pieces “Decred On-Chain: A Look at Block Subsidies” & “Decred On-Chain: The Ticket Pool VWAP” we laid down and explored the foundational bits of the Decred network and its relationship to (1) its block rewards and (2) its proof of stake ticketing system.

At a high level, the goal of these two pieces were to establish a baseline for more detailed / granular analysis in future research. This piece builds off these concepts and ideas, with a focus on DCR ticket data attributable to:

(1) DCR Hodlers

(2) Marginal Buyers / Sellers


A High Signal On-Chain Footprint

Introduction / Roadmap

In my previous piece “Decred On-Chain: A Look at Block Subsidies”, we explored the ultimate Network-Based indicator — block rewards, and their relationship to network valuation from the point of view of the network itself, miners, stakers, and the DCR treasury.

Within this article we will begin to explore and uncover the magic behind the ultimate Decred User-Based indicator — ticket data, and show how it provides a means for effectively gauging the HODL behavior of users within the Decred Network.

This article aims to be a foundational piece in understanding ticket data for future pieces, explain why it’s worthwhile…

Permabull Nino

Crypto + Accounting

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