1/ I did some calculations of the potential price of the based on its utility and how it works with .
A thread:
#XRPCommunity #XRP #Flare #FlareNetworks #Ripple #XRPthestandard #crypto
2/ Spark needs to be used as collateral to make . According to the whitepaper, there needs to be 2.5 for every 1 FXRP. Given that FXRP is the same price as , the price of Spark needs to be at least 2.5x the amount of XRP used in smart contracts.
3/ Examples:
If 10% of the 45 Billion supply is used for smart contracts, that's 4.5B XRP locked up. If XRP is $1 (for easy calculations) then you'd need $11.25B worth of spark (in ) to collateralize that much .
4/ If you scale the 45B spark tokens to be worth 11.25B market cap, then you get a price of 25c per Spark coin.
However if 20% is locked in smart contracts with XRP = $1 then Spark = 50c per coin.
5/ If 10% of XRP is locked in smart contracts with XRP = $5 then this goes to $1.25 per coin.
If 20% of XRP is locked in smart contracts at XRP = $5 then Spark = $2.50.
And XRP gets to $100 then Spark = $12.50 with 5% locked up, $25 with 10% and $50 with 20%
6/ You can easily see how this could massively increase in value due to increased utility of FXRP in smart contracts.
Please someone correct me if any of this is wrong...
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