Decimal

# Decimal Calculator

Decimal Calculator for Custom coins is available at: https://calculator.decimalchain.com/

The service allows you to plan the issue of your own coin, operating with the parameters of the initial issue, CRR and reserve in DEL, as well as to find out the cost of the coin when buying or selling the selected number of coins.

Contents

1 Overview
2 Issue a Coin
3 Buying a coin
4 Coin sale
5 Coin exchange
6 Calculation formulas

# Overview

The calculator consists of four modules:

  • ISSUE YOUR COIN
  • BUY (Buy tab) - allows calculating the increased value of a coin when you buying it
  • SELL (Sell tab) - allows calculating the decreased value of a coin when you selling it
  • EXCHANGE - allows you to simulate the exchange of one coin to another and see a change in the value of both coins.

# Issue a Coin

Fill in the fields to start working with the calculator:

  • Name your coin: think of a ticker for a coin, in this case it's AAA
  • Initial supply: The number of 'AAA' coins you want to get.
  • CRR, % (Reservation Factor, %): This parameter is responsible for how many DELs will be included in your coin pool. Read more in the article about CRR
  • Reserve: Number of DEL coins you convert to AAA.

# Buying a coin

Specify the number of coins to be purchased, the calculator will calculate the amount of DEL to be paid. Click the Buy button. You will see how the amount and value of the coin has changed, as well as the capitalization in DEL.

We have created a 'AAA' coin of 10,000 units with a 50% reservation factor and a 1000 DEL reserve. The market value of our coins is 2000 DEL (we have provided only half of the issue, this is CRR). The starting price per coin is 0.2 DEL (resulting from the division of 2000/10000).

Then we start to simulate the purchase of a coin in equal shares of 1,000 coins and we can see that the value of the coin is increasing. If the first purchaser was charged an average of 0.21 DEL per thousand coins, the second one will already cost 0.23 DEL and so on. That is, the more coins in circulation, the higher the price of each coin.

Please note that the market value of the coin will increase in proportion to the CRR, in our case the market value of each invested DEL coin will increase by 2 DEL. There is a direct correlation between volatility and CRR.

# Coin sale

Specify the number of coins to be sold, the calculator will calculate the amount of DEL you will receive. Click the Sell button. You will see how the amount and value of the coin has changed, as well as the capitalization in DEL.

When selling, the reverse mathematics of buying a coin is valid. The fewer coins in circulation, the lower the price of one coin.

# Coin exchange

The most interesting point to understand how the Decimal economy works.

As you know, anyone can create their own coin if they have something to offer the world. Imagine that it is the 15th century and you are a farmer and you have a barn with apples. You have a neighbor - a hunter from whom you want to buy a duck. To arrange for ducks to be exchanged for apples, you need to bargain properly. This is called a natural exchange.

Let's go back to the 21st century.

Decimal has implemented a natural exchange, with the only difference that the exchange rate of apples to duck is subject to mathematical formulas and changes dynamically, depending on the demand for both apples and duck meat.

Your AAA coins are apples. In the exchange tab, you can see how the value of your coin changes if you decide to buy a cup of latte in your favorite coffee shop that only accepts their own CUP coin. You only have AAA coins in your wallet, but Decimal allows you to convert easily AAA to CUP, ensuring that your coin is fairly exchanged for a coffee shop coin based on the current exchange rate of both coins.

Note that if you change one coin to another, you are also moving the DEL reserve to a second coin. This is the basic rule of money: the greater the demand and reserves, the more expensive the coins are.

# Calculation formulas

For geeks who like to climb under the hood and double-check everything by hand, the formulas below are presented:

CalculatePurchaseReturn

Number of coins (s), current reserve in DEL (r), CRR (c) and number of coins to be purchased (d). The result is the amount of DEL spent on buying the coin:

return s * ((1 + d / r) ^ c - 1);

CalculateSaleReturn

Number of coins (s), current reserve in DEL (r), CRR (c) and number of coins for sale (a). As a result, the number of DELs received from the sale of coins:

return r * (1 - (1 - a / s) ^ (1 / c));

Where is the formula for exchanging one coin for another? it doesn't exist. All calculations are made in relation to the base coin - DEL.

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