Circulating Supply Calculation

[BlockBoy32]

Hey I am trying to understand this calculation so I can replicate it in the model but I am a little confused. So I was able to replicate the buckets using a bottoms up calculation of each agents tokens, but I don't understand why we the cumulative staking/burning/buying is involved because shouldn't those be inherently included in the bucket calculations?

Let me know @achimstruve

[achimstruve]

Hi @BlockBoy32,

Thanks for bringing this up.

Before addressing your question: there is (now was) an error in the QTM spreadsheet formula. The burnt amount should not be subtracted from the circ. supply as it is already accounted for by not including that amount somewhere else. I fixed that error in the spreadsheet model now.

Now to your question: You mentioned 3 different things: staking, burning, and buying. Each of these are treated differently in the model.

Staking is not accounted for in the project buckets as it is done by arbitrary agents (early investors and market investors), that don't belong to the project (they are not project buckets).

For burning we have two mechanisms: one will be done directly from the dedicated project bucket (in our case "reserve") and must therefore be subtracted from the reserve bucket, which is done in row 174. The second mechanism is defined in the utilities, where a certain share of utility allocated tokens will get burnt. This burning happens as the corresponding amount of tokens in row 162 is not accounted for anywhere else afterwards and thereby removed from the circ. supply.

Buying is accounted for in the liquidity pool calculations and bought tokens will then be redistributed among different market and protocol buckets.

You can always do a sanity check of the calculations in the spreadsheet model by comparing the circ. supply with the amount of tokens vested + airdropped amount - project bucket burnings - utility burnings. This always sums up to the circ supply.

Let me know if this answer helps or if you have any more questions.

[BlockBoy32]

That makes sense, I made those adjustments, I had another question, were you planning on adding the liquidity pool vesting? I noticed it was uncolored and I need it for the unvested supply. If you could do it because you are familiar with those policies that would be great but otherwise I can dive into it. I have all the other pieces of the unvested supply ready but just need that last one. (also finished fixing the circulating supply) @achimstruve

[achimstruve]

It is already there. You just use the initial token amount in the liquidity pool as this is the "vested" amount.

[BlockBoy32]

I guess the initial one is but when I was looking ahead I don't think I saw the mechanisms for anything after the first row. I will just stick to the plan with one row at a time

[achimstruve]

I just pushed the new implementation that contains the rest of the model and all timesteps. We can close this.