Deleted my last couple of messages due to errors in the model. I’m hoping this one is more accurate.
There is a decentralized transcoding network called livepeer. The network uses a token for governance called LPT. New LPT is generated every round, and each round is about 22 hours. The amount of LPT generated depends on the networks participation rate, which is the amount of LPT staked to node operators on the network, and there are 100 node operators. If the inflation rate is above 50%, less new LPT is generated every round. Conversely, when the participation rate is below 50%, more LPT is generated. For this model, we’re going to assume the inflation rate fluctuates between .2% and -.1% throughout a 12 month period. You will use a base 90 day average of 6,926 for the amount of LPT generated each round and subtract or add inflation/deflation rate as necessary.
In a proposal by Livepeer’s co-founder, each round, 5% of the LPT generated by the 100 node operators will be sent to a protocol treasury that will be used for public goods funding.
Column 1: Month
In the first column, show the months of the year, up to 12 months.
Column 2: LPT Generated
In the second column, show the LPT that is generated each round but compounded for the monthly amount, which is 207,780 and for every 6,926 out of the 207,780 adjust based on a random inflation % between +0.2% and -0.15% for each row.
Column 3: LPT Funding (5%)
Using the LPT generated, create another column that takes 5% of the LPT and displays the amount in each row, for each month.
Column 4: Treasury Balance
In the next column, take the LPT Funding (5%) (5% LPT generated) and compound it for each row, for the 12 months. begin the treasury balance with a balance of 100,000 LPT and add the 5% on top of it for each row.
Column 5: Monthly Spend
In the next column, we will input the monthly spending of the treasury fund. For this model, we will pick a random number between 5,000 and 50,000 for each row for the 12 months, never exceeding the total treasury amount.
In the final column, we will subtract the monthly spending from the Total Treasury amount.
Build me the model.