A new framework for valuing cryptocurrencies has been proposed, emphasizing the need to differentiate between token and equity valuation. The framework suggests using enterprise value divided by holder revenue, rather than protocol revenue, to better reflect the actual income received by token holders. Key metrics include the accrual ratio, which measures the proportion of protocol revenue that reaches holders, and the impact of treasury liquidity on valuation.
The framework highlights the importance of understanding the difference between team incentives, which are genuine operating expenses, and investor unlock sell-offs, which are market events. It also introduces the concept of 'claim discount' to assess the real value of treasury assets, based on the extent to which holders can control them. This approach aims to provide a more accurate picture of a token's value by considering the actual revenue distribution and business costs, offering a clearer understanding of the market's valuation demands.
New Framework for Accurate Cryptocurrency Valuation Proposed
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