Price Dynamics
When you buy someone's Share on xfam.tech, it's just like placing a bet on the future success of their xfam.tech profile.
Your potential gains are linked to their success and rising popularity, but there's also the risk of your Shares losing value if their popularity wanes.
It's a dynamic market influenced by the ebb and flow of user engagement and interest in specific profiles.
Profile Share Pricing on xfam.tech
Pricing Profile Shares on xfam.tech is as simple as a four-line code within an immutable smart contract.
This formula dictates the buying and selling prices, ensuring a transparent and consistent approach.
It also operates autonomously on the blockchain, safeguarding its immutability.
Buying Price (in ETH)
The formula for the buying price is elegantly straightforward:
'n' signifies the total outstanding supply
20,000 serves as the scaling factor or constant, thoughtfully selected by xfam.tech's economic model
Selling Price (in ETH)
For selling Shares, the formula slightly adjusts:
You can observe this formula in action through the following graphs:
In other words...
Betting on Success
If the person whose Share you bought becomes more popular and attracts more followers and investors who also buy their Shares, the value of those shares will likely increase. It's a bit like investing in a rising stock market.
As their profile gains traction and more people want a piece of it, the value of your acquired Shares may go up.
Risk of Decline
Conversely, if your friend's popularity on xfam.tech declines and a significant number of people decide to sell their Shares, the value of their Shares can decrease. Think of it as a stock that's losing its appeal in the market.
When people are selling, the value tends to drop.
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