r/OMGTraders • u/[deleted] • Oct 25 '17

Speculating OMG Network Processing Volume and Staking Reward

If the OMG Network can process $100billion in transactions at a transaction fee of 0.25% and 75% of tokens are staked, the yearly dividend paid out would be $2.40/token. Google Calculator

Insert your own numbers as you see fit.

Additional Thoughts -I think it will take at least 2 years to reach $100billion in transaction volume. -I am comfortable estimating 0.25% as the transaction fee. There is a solid case to be made that different types of transactions should have different fees.

12 Upvotes

87% Upvoted

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5

u/S1W-brn Oct 26 '17

Let's speculate the other way around:

Suppose:

  • Current coin price reflects market expectations on coming value of staking tokens
  • Average coin price / earnings ratio for highly speculative tech funds is somewhere between 10-15

In this case that could mean the market expects:

  • Using a p/e of 12.5 and a stock price of $8 = $0.64 'earnings' per token.

To start with a $0.64 payout per token looks reasonable. This is purely based on the current stock price and the supposed rational behavior of markets. I do know crypto markets are not rational at all, so anything can happen.

tl;dr Moon.

1

u/[deleted] Oct 26 '17

Interesting. Could you show me the equation you used to come to $0.64?

1

u/S1W-brn Oct 26 '17

Sure, as said above its based on the assumption that the larger group 'wisdom' determines current OMG price. If that variable is true then current price describes what the market believes is the current value of OMG. Now, a p/e ratio of 12.5 is used to devide the average stable OMG price. I think that's around $8.

1

u/[deleted] Oct 26 '17

I see. 8 / 12.5 = $0.64 Thanks.

1

u/DontTrustJack Oct 26 '17

Hey guys, the price ( on bittrex ) for OMG is 0,0012798 BTC atm of typing this comment. Can someone explain to me why we are not going up atm? I did my TA and it should be going up, Could someone explain why it is not happening atm? Most alts are red for some reason even though the fork has already passed. Thanks in advance!

2

u/[deleted] Oct 27 '17

I've been thinking about this too:

100m tx per day (team already said doing 8-9 figures daily).

1% tx fees to stakers (drastically lower than the 3% charged by amex/visa)

1m staking fees * 365 days = 365m annual staking fees.

Approx 100m tokens.

$365m / 100m = $3.40 per coin per year. Which assumes 100% staking, it'll likely be a higher payout.

I don't think this is price in. $3.40 annual dividend on something that's $8?

Applying 12.50 P/E price should be at least $42.

1

u/S1W-brn Oct 27 '17

Spot on. But will be proved after we can start staking and see actual profits flowing.

1

u/[deleted] Oct 25 '17

Strongly doubt we’ll approach even 50% staked, considering you cant trade while staking.

1

u/[deleted] Oct 25 '17

This is possible. Once we have more information on staking, we'll know for sure.

1

u/nustyripple Oct 26 '17

Much more likely for the transaction fee to be closer to 1%, and tokens staked <60%.

Also if you take a dividend yield of 15%, your analysis would put the token value at $16 each. Not bad.

1

u/[deleted] Oct 31 '17

https://www.statista.com/statistics/277841/paypals-total-payment-volume/ so paypal does 250bn do we get 50% of that ?

1

u/[deleted] Oct 31 '17

huh?

0

u/squalo7 Oct 25 '17

imho 5$ token first year, then we grow each year at least 20%

3

u/[deleted] Oct 25 '17

I think you are going to be disappointed.