# Token Mathematics

We believe that tokenomics does not end with just giving vague ideas to what the token will do and a general distribution chart of the token supply.&#x20;

We decided that the magnitude of the project needs deep analysis so we made extensive simulations on our token economy post launch to understand how the token will behave on Next Earth. The mathematical analysis offers support for the issue price and depicts a robust token economy.&#x20;

The key model inputs are:

* Actual measured platform growth data.
* The NextEarth ecosystem development plan.
* The NXTT token structure.&#x20;
* Historical volatilities of benchmark tokens.\\

The mathematical model builds on our roadmap, marketing strategy and integrates the feature rollout plan. The expected NXTT value follows the token utility development. A healthy level of liquidity will be provided by a balanced token supply supporting platform growth. In the long-term, we expect network effects to kick in at large enough platform traffic.&#x20;

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Utility is calculated by a discounted cash flow (DCF) approach. Landowner growth is based on the Next Earth business plan.<br>


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