<p>Suppose there is a token, an issuer of the token, and a reclaimer of the token. Every year at the beginning of the year the issuer creates and sells at auction 10 tokens. At the end of each year the reclaimer buys and destroys X number of tokens, and is willing to spend any amount of money to do so.</p>
<p>In the very first auction the 10 tokens sold for a total of $10.</p>
<p>How much money will the reclaimer spend buying tokens on year N, assuming X &lt; 10 and constant over time?</p>
<p>Also assume that the 10 tokens sold at auction every year cannot all be bought by one person, rather they are purchased  in even quantities among the competing resellers.</p>

CC BY-SA 4.0
2023-06-17T11:32:33.263Z
Presumably speculators will corner the market in the run up to the repurchase, causing a major price spike.
dm63
CC BY-SA 4.0
2023-06-21T19:23:04.307Z
Assume no speculator can hold >= X tokens and no two speculators can coordinate
Jonah
CC BY-SA 4.0
2023-06-21T19:26:12.527Z
If you don't know the answer, do you know what kind of analysis is required to figure it out?
Jonah
<macroeconomics><currency>
Determine the value of this hypothetical token
Jonah
# Determine the value of this hypothetical token

(Asked by: username_0 on 2023-06-16)

Suppose there is a token, an issuer of the token, and a reclaimer of the token. Every year at the beginning of the year the issuer creates and sells at auction 10 tokens. At the end of each year the reclaimer buys and destroys X number of tokens, and is willing to spend any amount of money to do so.

In the very first auction the 10 tokens sold for a total of $10.

How much money will the reclaimer spend buying tokens on year N, assuming X < 10 and constant over time?

Also assume that the 10 tokens sold at auction every year cannot all be bought by one person, rather they are purchased in even quantities among the competing resellers.

**Tags:** macroeconomics, currency

> **Comments:**
> **username_1**: Presumably speculators will corner the market in the run up to the repurchase, causing a major price spike.  
> **username_0**: Assume no speculator can hold >= X tokens and no two speculators can coordinate  
> **username_0**: If you don't know the answer, do you know what kind of analysis is required to figure it out?  

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## 0 answers

