Commoninfo:crr

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CRR

CRR – Constant coefficient ratio to the reserve.

A distinctive feature of the Decimal blockchain is the specifics of the economic model of coins. All the advantages follow from it:

  • - Simple coin issue;

  • - The ability to exchange them for any other within;

  • - the networks, paying fees with any coins of Decimal ecosystem.

Native DEL coin

The native DEL coin, in addition to the traditional ones, performs the function of backing. Each custom coin is backed up by a guarantee in the form of a certain amount in DEL. The size of this guarantee in relation to the total issue of a custom coin directly affects the value curve of this coin.

CRR parameter when creating a coin

The CRR parameter is set when coins are created, and then the value curve remains unchanged forever.

When market conditions and the supply/demand correlation change, the value of the coin moves along the calculated curve, either up or down.

En-crr1.jpg

Formulas for determining the value of coins

The key parameters on the Decimal network are:

  1. Reserve

  2. CRR

  3. The total number of coins issued.

All of them are involved in calculating the cost of buying or selling. The very existence of the two formulas is a consequence of nonlinear nature of the changes in coins` value.

Calculation of the coin purchasing cost

En-crr2.png

where

Reserve - current reserve in DEL;
Want to buy - the number of coins to buy;
Issue - the total number of coins;
CRR - Constant Reserve Ratio (for example, 20 for 20%)


Calculation coin sale value

Sale Amount = Reserve * (1 — (1 — Want to sell/Issue) ^ (100/ CRR))

where

Reserve - current reserve in DEL;
Want to sell - the number of coins for sale;
Issue - the total number of coins;
CRR - Constant Reserve Ratio (for example, 20 for 20%)


Calculation of the current price of 1 coin

Price = Reserve * (1-(1-1/Issue)^ (100 / CRR))

where

Reserve - current reserve in DEL;
Issue - the total number of coins;
CRR is a Constant Reserve Ratio (for example, 20 for 20%).