UNIT's Algorithm

​The UNIT paper describes the basis of UNIT's algorithm. We display two charts of the value of 1 unit over time on our website: the Bitcoin one (denominated in SATS) and the Ethereum one (in Finney).
How to Obtain UNIT's value
The value of 1 UNIT comes from the total market capitalization of our index divided by human years.
Calculating the Total Market Capitalization
The total market capitalization is calculated by choosing cryptocurrency 111
 with supply S1S_1S1​
 and adding the available supplies of each cryptocurrency (Sc)(S_c)(Sc​)
times the price of each cryptocurrency ccc
 in terms of cryptocurrency 111
 (Pc,1)(P_{c,1})(Pc,1​)
.
S1+S2P2,1+⋯+Sn Pn,1=∑c=0nScPc,1S_1+S_2 P_{2,1}+\cdots+ S_n\ P_{n,1} = \displaystyle\sum_{c=0}^{n} S_cP_{c,1}S1​+S2​P2,1​+⋯+Sn​ Pn,1​=c=0∑n​Sc​Pc,1​
Finally
We let NNN
 be the current total number of humans and YYY
the average life expectancy at birth. And one unit of value is defined by:
​
S1+S2P2,1+⋯+Sn Pn,1NY.\frac{S_1+S_2 P_{2,1}+\cdots+ S_n\ P_{n,1}}{NY}.NYS1​+S2​P2,1​+⋯+Sn​ Pn,1​​.

Last modified 20d ago