📊Tokenomics

To estimate the token growth dynamics for the DNT token, several factors have to be considered. Let’s explore the following target scenario as an example:

1. Initial Token Value: $0.025 USD.

2. Total Tokens in Circulation: 21.55 million DNT.

3. Expected Investment in Lending Pools: Up to $100,000 USDT worth of DNT.

4. Interest Rate: 12% per annum, paid quarterly.

5. Platform Fees: 3%, of which 50% of DNT is burnt.

6. Token Burn Rate: This is an important factor as it reduces the total supply of tokens, potentially increasing their value due to scarcity.

The assumptions:

- The entire $100,000 USDT is invested in DNT tokens.

- The quarterly interest payments are made in DNT tokens, not in USDT.

- The platform fee is applied to the total investment and is deducted in DNT tokens.

- The burn rate applies only to the platform fees.

Let's calculate the impact of these factors over a 1-year period. We'll also need to assume a constant rate of investment and burning throughout the year for simplicity. If the actual investment and burning are not uniform throughout the year, the real-world results will differ.

Calculation:

Once we have these figures, we can estimate the new total supply of DNT tokens after 1 year and discuss the potential impact on the token's value.

Based on the calculations for the scenario:

1. Investment in DNT Tokens: The $100,000 USDT investment would be equivalent to buying 4,000,000 DNT tokens at the initial value of $0.025 per token.

2. Annual Interest in DNT Tokens: The total annual interest to be paid on this investment, at a 12% rate, would be 480,000 DNT tokens.

3. Platform Fee in DNT Tokens: The total platform fee on the investment, at a 3% rate, would be 120,000 DNT tokens.

4. DNT Tokens Burnt: Based on the 1.5% burn rate of the platform fee, approximately 60,000 DNT tokens would be burnt.

5. New Total Supply After 1 Year: After burning 60,000 DNT tokens, the new total supply of DNT tokens would be approximately 2,096,000.

Implications:

- The burning of tokens reduces the total supply, which can potentially increase the token's value due to scarcity.

- However, the increase in value will also depend on other factors like market demand, overall performance of the platform, investor confidence, and broader market conditions.

- The distribution of interest payments in DNT tokens increases the number of tokens held by investors, which could impact their decisions on holding or selling the token.

Considering the price of the token is proportional to decrease in supply of the tokens available on the open market we can provide the following price projection for the underlying token value. Assuming that our community invests up to 100’000 USDT each month into the lending pool we can assume that the price will act as shown below:

1. Monthly Token Prices:

- Month 1: $0.0362

- Month 2: $0.0524

- Month 3: $0.0759

- Month 4: $0.1099

- Month 5: $0.1591

- Month 6: $0.2304

Closing Price at End of Month 6:

- The closing price of the DNT token at the end of the 6th month is approximately $0.2304.

This calculation assumes that each month's investment increases the price of the token in direct proportion to the percentage of the total token volume purchased, with the purchase price being the closing price of the previous month. The resulting prices show a significant increase over the six months, reflecting the substantial investment and its impact on the token's supply and demand dynamics.