5.6.4 Total Demand

The total demand for tokens, represented as , is computed by combining the demand originating from the network deposits and the demand stimulated by staking, represented as . The network deposit demand itself is a composite of the demand from nodes and the demand generated by transactions .

Nodes and transactions within the network generate an inherent demand for tokens as these tokens facilitate the operations and enable various functionalities within the network. This generates what we term the Network Deposit Demand.

Moreover, staking presents another crucial source of token demand. In staking, network participants can lock their tokens for a certain period, contributing to the network's security and in return earning rewards. This staking process is especially important in B2B2C systems, where tokens can help enable and build individual DeFi applications, thereby increasing their demand.

In this context, the contribution of staking to the total token demand should not be underestimated. It adds another dimension of utility for the token, enhancing its intrinsic value by providing more use-cases for network participants, and thus potentially driving up demand.

Figure 90 Cumulative Supply and Total Token Demand