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Every economic behavior in Vibe Token — how price moves, how tokens are earned, how distributions flow, and how exits are valued — is governed by six formulas. This page defines each one, explains its variables, and walks through a concrete example so you know exactly how the math works.

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1. Token Price

Variables Price is a direct function of supply. Every token minted raises the price slightly; every token burned lowers it. There are no external market forces, no order books, and no speculation — the price is always computable from first principles. Worked example
k = 0.01, S = 10,000 P = 0.01 × √10,000 = 0.01 × 100 = $1.00

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2. Pricing Constant

Variables k anchors token price to your business’s revenue scale. Dividing MRR by 1,000,000 keeps prices in a sensible dollar range across businesses of very different sizes. The floor of 0.005 ensures that even pre-revenue or very early-stage businesses have a nonzero starting price. Worked examples
MRR = $10,000 k = max(10,000 ÷ 1,000,000, 0.005) = max(0.01, 0.005) = 0.01
MRR = $2,000 k = max(2,000 ÷ 1,000,000, 0.005) = max(0.002, 0.005) = 0.005 (floor applies)

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3. Token Earning

Variables When a revenue event occurs, the contributor’s share of that revenue (α × dR) is converted into whole tokens at the current price. The floor() function ensures tokens are always whole integers — no fractional tokens are ever issued. Worked example
α = 0.20, dR = $500, P = $1.00 tokens = floor(0.20 × 500 ÷ 1.00) = floor(100) = 100 tokens

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4. Revenue Distribution

Variables Every revenue event splits into two effects: tokens are minted for the contributor (see Token Earning above), and the same revenue share funds a cash distribution to all existing holders. Your payout is proportional to the fraction of supply you hold. Worked example
α = 0.20, dR = $1,000 D = 0.20 × $1,000 = $200 S = 5,000 → payout per token = $200 ÷ 5,000 = $0.04

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5. Exit Value

Variables When you exit, your tokens are burned and you receive their current market value. Because P is supply-based, the price at exit depends on how much the supply has grown or shrunk since you earned those tokens. Exiting also reduces S, which lowers P slightly for remaining exits. Worked example
tokens = 300, P = $2.50 exit_value = 300 × $2.50 = $750

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6. Supply Floor

Smin is the minimum circulating supply. It exists to prevent the price formula P = k × √S from approaching zero as supply shrinks — a mathematical singularity that would make the system unworkable. Supply is never allowed to fall below 1,000, even if burns would otherwise push it lower. Worked example
At Smin with k = 0.005: P = 0.005 × √1,000 = 0.005 × 31.62 ≈ $0.158
This means even in the worst case — minimal supply and the floor pricing constant — there is always a nonzero, meaningful token price.

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Variable Glossary