📖TokenUnlocks Methodologies

Explanation of TokenUnlocks methodologies and details

Token Unlocks' goal is to resolve the issue of unstructured token supply data. To solve the problem, we have developed methodologies and defined metrics that are displayed on our token unlocks website. These methodologies are designed to establish standards for tokenomic data and ensure transparency in the industry, enabling everyone to understand and utilize these metrics to make informed decisions.

Metrics Definition Formula

Metrics	Definition	Formula
Fully Diluted Value (FDV)	This term refers to the total value of a cryptocurrency project, considering the total token supply in circulation. It provides an estimate of the project's potential for growth and future value.	`FDV = Current Price * Total Supply`
Stakeholder Wallet	This is a wallet that holds tokens with special conditions or benefits agreed upon by involved parties. These wallets are usually meant to hold tokens without plans to sell them in the public market. Stakeholder wallets can include investors, team members, treasury holdings, or wallets that are explicitly designated as non-circulating supply. Tokens in stakeholder wallets are classified as non-circulating supply.
Circulating Supply	This term refers to the number of tokens transferred to non-stakeholder wallets and available for open market trading. It excludes tokens that are locked or held by stakeholder addresses. This supply quantity represents the number of tokens that can be publicly traded and circulate in the market. Even if these tokens have not been traded in the secondary market yet, they are considered readily available for trading once transferred out from stakeholder wallets. We collect this supply data from multiple sources.
Locked Supply	This refers to the quantity of tokens that have been restricted to prevent trading in the public market and transfer to non-stakeholder wallets. The lock token process encourages long-term stakeholder participation in projects. The duration of the lock time and type of vesting (cliff or linear) are also specified. This metric does not include the locked token in the re-lock mechanism.
TBD Locked supply	This refers to the amount of tokens that have not yet been assigned a release timing. These tokens are usually set aside for specific purposes and are released when certain conditions are met, such as DAO treasury, reserves and unallocated fund. Once the project provides data about the lock-up period and the unlocking mechanism (cliff or linear), the TBD locked supply will decrease and change to a locked supply with a known lock-up period.
Unlocked Supply	This refers to the amount of a token that is unlocked and tradable on the public market. It is not necessary to transfer the token out to a non-stakeholder wallet. The token can be unlocked and still held by the stakeholder's wallet. Therefore, the unlocked supply is not the same as the circulating supply. It's used to gauge the actual amount of tradable tokens in the public market.
Available Supply	The total quantity of tokens that are immediately accessible and tradable on the public market. It consists of the 'Unlocked Supply,' which is freely tradable, and the 'TBD Locked Supply,' which becomes available as specific conditions are met, indicating the potential impact of additional tokens entering circulation.	`Available supply = Unlocked Supply + TBD Locked`
Untracked supply	This refers to the amount of tokens that we have not assigned to a specific allocation due to data uncertainty.
Max Supply	This refers to the theoretical maximum number of tokens that could possibly exist in the future. This number is either reported by the project or set as a condition on the smart contract. In some cases, this number may be infinite, which indicates there is no limit to token issuance.
Inflation	An increase in unlock supply caused by unlocking or issuance mechanisms (like cliffs and linear releases).
Deflation	A decrease in unlocked supply due to burning mechanism.
Emission	Emission refers to the net change in the unlocked supply of a cryptocurrency over a set time. It increases due to inflation and decreases due to deflation. This metric helps estimate future token supply dilution.	`Emission = Inflation - Deflation`

Fully Diluted Value (FDV)

This term refers to the total value of a cryptocurrency project, considering the total token supply in circulation. It provides an estimate of the project's potential for growth and future value.

FDV = Current Price * Total Supply

Stakeholder Wallet

This is a wallet that holds tokens with special conditions or benefits agreed upon by involved parties. These wallets are usually meant to hold tokens without plans to sell them in the public market. Stakeholder wallets can include investors, team members, treasury holdings, or wallets that are explicitly designated as non-circulating supply. Tokens in stakeholder wallets are classified as non-circulating supply.

Circulating Supply

This term refers to the number of tokens transferred to non-stakeholder wallets and available for open market trading. It excludes tokens that are locked or held by stakeholder addresses. This supply quantity represents the number of tokens that can be publicly traded and circulate in the market. Even if these tokens have not been traded in the secondary market yet, they are considered readily available for trading once transferred out from stakeholder wallets. We collect this supply data from multiple sources.

Locked Supply

This refers to the quantity of tokens that have been restricted to prevent trading in the public market and transfer to non-stakeholder wallets. The lock token process encourages long-term stakeholder participation in projects. The duration of the lock time and type of vesting (cliff or linear) are also specified.

This metric does not include the locked token in the re-lock mechanism.

TBD Locked supply

This refers to the amount of tokens that have not yet been assigned a release timing. These tokens are usually set aside for specific purposes and are released when certain conditions are met, such as DAO treasury, reserves and unallocated fund. Once the project provides data about the lock-up period and the unlocking mechanism (cliff or linear), the TBD locked supply will decrease and change to a locked supply with a known lock-up period.

Unlocked Supply

This refers to the amount of a token that is unlocked and tradable on the public market. It is not necessary to transfer the token out to a non-stakeholder wallet. The token can be unlocked and still held by the stakeholder's wallet. Therefore, the unlocked supply is not the same as the circulating supply. It's used to gauge the actual amount of tradable tokens in the public market.

Available Supply

The total quantity of tokens that are immediately accessible and tradable on the public market. It consists of the 'Unlocked Supply,' which is freely tradable, and the 'TBD Locked Supply,' which becomes available as specific conditions are met, indicating the potential impact of additional tokens entering circulation.

Available supply = Unlocked Supply + TBD Locked

Untracked supply

This refers to the amount of tokens that we have not assigned to a specific allocation due to data uncertainty.

Max Supply

This refers to the theoretical maximum number of tokens that could possibly exist in the future. This number is either reported by the project or set as a condition on the smart contract. In some cases, this number may be infinite, which indicates there is no limit to token issuance.

Inflation

An increase in unlock supply caused by unlocking or issuance mechanisms (like cliffs and linear releases).

Deflation

A decrease in unlocked supply due to burning mechanism.

Emission

Emission refers to the net change in the unlocked supply of a cryptocurrency over a set time. It increases due to inflation and decreases due to deflation. This metric helps estimate future token supply dilution.

Emission = Inflation - Deflation

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Last updated 1 month ago