Mathematical Model of EVA
The EVA Protocol is underpinned by a simple yet powerful mathematical framework that guarantees value stability and appreciation. This section delves into the formulas and principles that ensure EVA's continuous growth.
Core Formula: Burn Price
The fundamental equation driving EVA's tokenomics is:
Burn Price = wBTC balance of Burn Vault / Total EVA Supply
Key Variables:
- Total wBTC in Burn Vault: Represents the total amount of wrapped Bitcoin held in the Burn Vault, which grows daily from mining revenue.
- Total EVA Supply: The total number of EVA tokens in circulation, which decreases as tokens are burned.
Daily Value Growth
EVA's deflationary mechanics and mining operations contribute to daily value growth. Here's how:
Mining Revenue
- Monthly mining operations generate approximately +9 BTC.
- This revenue is converted to wBTC and deposited into the Burn Vault.
Token Burns
- Every time users redeem EVA for wBTC, their tokens are permanently burned.
- This reduction in the total EVA supply increases the value backing of each remaining token, accelerating future price growth
Why This Matters
EVA's mathematical model provides:
Predictability:
- Investors can confidently project the value growth of their holdings over time.
Fairness:
- All token holders benefit equally from mining revenue and deflationary mechanics.
Long-Term Sustainability:
- The system is designed to ensure value appreciation, rewarding holders who trust the protocol.
Explore more about EVA's mechanics:
- For more insights into the Burn Vault and a real world example, see Burn Vault Mechanics.
- Transparency