Tokenized economic value

The core feature of Yidocy Plus protocol is to collateralize and tokenize the BTC mining power and other real-world utilities generated by the physical resources. This means that the total circulation of Yido tokens collectively represents the level of utilities secured in the physical layer.

By the token design, holding a Yido token allows one to own legitimately the underlying utilities that each Yido represents as well as the economic value attached to the real-world utilities. The unique token design makes it possible to reasonably calculate or estimate the intrinsic value of Yido. This is the trait that distinguishes Yido from the vast majority of altcoins and NFTs.

The theoretical fair market value of a Yido can be calculated by the sum of the discounted cash flows (DCF) generated from Bitcoin mining and DePIN rewards, earned with the underlying utilities of the token, over the duration of rewards operations.

The formula for the valuation is:

$$Value\,of\,Yido = CFR 1/(1+R)^1 + CFR 2/(1+R)^2 +CFR n/(1+R)^n$$

where:

CFR 1 = Cash flow from rewards distribution for year 1 CFR 2 = Cash flow from rewards distribution for year 2 CFR n = Cash flow from rewards distribution for year n R = Discount rate

A caveat here is that since the duration of the reward operation is not fixed, the valuation calculation carries a degree of uncertainty. Nevertheless, the possibility of applying a widely accepted open-source valuation method enhances the transparency of token economics.