Token Value Calculation

LunarDAO Squad (the DAO membership) is defined by holding the governance token $VOX. $VOX represents voting shares and $VOX-LOOT non-voting shares (Loots) of LunarDAO treasury. In other words the value of $VOX and $VOX-LOOT is the same, but only $VOX can be used for voting. In the following definition and calculation we only use the term Shares - in this case shares refers to both $VOX and $VOX-LOOT. The combined value of $VOX and $VOX-LOOT is derived from the net treasury value divided by a total sum of $VOX and $VOX-LOOT.

Terminology & Formulas

TOTAL SHARES: Amount of shares in the treasury.

TOTAL TREASURY: The net asset value in the treasury (in our example ETH).

SHARES PRICE: Amount of shares per ETH or amount of USD per share.

  1. If the treasury is ETH only; Price in shares per ETH.
= TOTAL SHARES / TOTAL TREASURY
  1. If multiple assets in teasury; Price in USD per share.
= TOTAL TREASURY USD NET ASSET VALUE / TOTAL SHARES

ALLOCATED ASSET: # ETH (or any asset) to be allocated to a recipient through minting new shares.

NEW TOTAL SHARES: Amount of shares after minting new ones. 

= TOTAL SHARES / 1 - (ALLOCATED ASSET / TOTAL TREASURY)

MINTED SHARES: Amount of shares to be minted to represent the value of ALLOCATED ASSET. 

= NEW TOTAL SHARES - TOTAL SHARES
= TOTAL SHARES / 1 - (ALLOCATED ASSET / TOTAL TREASURY) - TOTAL SHARES

EQUITY DILUTION %: Decrease in existing shareholders' ownership percentage of the treasury as a result of minting new shares.

= ALLOCATED ASSET / TOTAL TREASURY * 100

Example

  • Allocated asset = 5 ETH
  • Total Treasury = 100 ETH
  • Total shares = 10 000 $VOX
  • Minted shares = 10 000 / 1 - ( 5 / 100 ) - 10 000 = 526.32
  • New price (shares per ETH) =
    = NEW TOTAL SHARES / TOTAL TREASURY
    = 10 526.32/100 = 105.2632
  • Equity dilution % = 5 / 100 * 100 = 5%

Example Conclusion

  • Total allocated ETH: 5 ETH
  • Total treasury: 100 ETH
  • New total shares: 10526.32 (previously 10 000)
  • New shares: 526.32
  • New price: 105.2632 (# of shares per ETH. Previous price was 100)
  • Equity dilution: 5%