Despite the surge in interest in crypto-currencies over the past year, community members and Wall Street veterans alike continue to confuse even the most basic aspects of financial valuation when applied to crypto.

In this paper, I try to establish a framework for discussing valuation. These ideas may be useful in understanding crypto from a trading/investment standpoint. However, the target audience is crypto’s developer community. Decisions made by both core and Dapp developers will have long-term monetary policy consequences. A basic understanding of these economics are therefore requisite to the code design process.

This document is intended for informational purposes only. The views expressed in this document are not investment advice or recommendations.

A Discourse on Token Valuation