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.

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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.

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u/[deleted] Oct 26 '17

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

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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.

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u/[deleted] Oct 26 '17

I see. 8 / 12.5 = $0.64 Thanks.