Tokenomics
We will issue 60B NXTT and offer 5% of the total token supply for sale through a Token Sale. We will lock up 20% for the development team (vested for a 2 year period) and distribute the remaining 75% of our supply across multiple business goals, all with their own respective vesting schedules.
This allows us to keep funding the growth of the Ecosystem without exposing the token economy to any large token holder. We will also unlock 6% of the token supply to provide liquidity through Decentralized Exchanges right after the token sale.
Using the transparent Wallets detailed in a later section, we will start building the Next Earth economy. Each major development will be published in the form of a NEIP (Next Earth Improvement Proposal) with our plans for how we intend to use NXTT (if we need to use it at all).
For the Token Sale we will have a Tier & Ticket system to make sure that no participant is driven out of participation by whales. Nonetheless, this system will also recognize and reward the loyalty and trust of our earliest and most active citizens.

Token Mathematics

We believe that tokenomics goes far beyond vauge plans for the future and a general distribution chart of the token supply.
Therefore, we have already conducted a deep analysis and performed extensive simulations of our token economy to better understand how the token will behave on Next Earth.
As such, the mathematical analysis below offers support for the issue price and depicts a robust token economy. The key model inputs are:
β€’ Actual measured platform growth data.
β€’ The Next Earth ecosystem development plan.
β€’ The NXTT token structure.
β€’ Historical volatilities of benchmark tokens.
The mathematical model builds on our roadmap and 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. We calculate utility by a discounted cash flow (DCF) approach and base landowner growth on the Next Earth business plan.

High levels of volatility

Crypto markets continue to face phases of adverse volatility. Uncertainty remains substantial for the time being and we anticipate high volatility periods in the future as well.
There are a number of factors behind these wild price movements:
β€’ The crypto economy is still an emerging market. Rapid market development often correlates with high volatility.
β€’ Media attention often amplifies otherwise valid price movements.
β€’ Low market liquidity at times tends to cause larger-than-average price movements.
β€’ Changes in regulation tend to have strong effects on the market.
β€’ As perception of the space shifts, new participants keep entering the market.
β€’ Historical data shows that volatility tends to be high right after launch for most new coins. Initial levels often exceed 300% - 400%.
A key strategic goal for the Next Earth platform is to provide stability with increasing value so that the token price is not extremely volatile. Mathematical modeling helps mitigate that risk. It is important to note, however, that no amount of modeling can eliminate uncertainty completely.

Short-term dynamics

The discounted cash-flow (DCF) approach describes a fair value state at each future time point. It is not a dynamic model, i.e. it does not account for short-term price fluctuations.
The NXTT token, as a traded asset, will be subject to market influences. Although DCF is expected to assess the long-term equilibrium, the short-scale behavior will deviate from mean values.
Here we present a dynamic approach that gives insight into what can happen in the short run. The short-term model takes the first-year NXTT Economics model (mid or realistic scenario) as input and adds exchange market dynamics to it using a Monte-Carlo simulation. We assume a standard lognormal stochastic differential equation in the form of:
The drift term and volatilities are calibrated to historic data. This technique allows us to go beyond static modeling and have an idea of what can happen in the short term.
The simulation results underline the observation that crypto is a risky asset class for the time being. Market participants are advised to precede any investment decision with prudent analysis, to implement conscious trading strategies and to observe portfolio management best practices.