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Token Velocity is Good!

And other implications of analyzing MV = PQ from first principles

About the writer

Introduction

Interpreting EoE in its intended context

Interpreting EoE in crypto context

If we are concerned about whether there will be a market of customers who would like to use these newly available coin supply on the exchange to avail the company’s services, the Equation of Exchange can do nothing to answer this. When instantaneous coin supply suddenly increases due to hodlers dumping, the exchange rate of the coin may well decrease if this yet-untapped market does not exist. This is not captured by velocity. Equation of Exchange does not characterize spontaneous supply/demand dynamics and is too static a model for this kind of analysis.

Contrasting with popular interpretation

Chris Burniske and Vitalik Buterin’s versions:

Kyle Samani’s version:

In Summary

nodle

Nodle​ is a decentralized network provider specializing in…

Madhumitha Harishankar

Written by

I am a 4th year PhD Candidate at Carnegie Mellon University. I enjoy applying economics, optimization and machine learning to wireless networks and sensor data.

nodle

nodle

Nodle is a mesh connectivity provider for the Internet of Things. It has built a robust BLE-powered network to help companies and cities connect their devices.

Madhumitha Harishankar

Written by

I am a 4th year PhD Candidate at Carnegie Mellon University. I enjoy applying economics, optimization and machine learning to wireless networks and sensor data.

nodle

nodle

Nodle is a mesh connectivity provider for the Internet of Things. It has built a robust BLE-powered network to help companies and cities connect their devices.

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