# The Unit Algorithm

**

*The Unit*paper describes the basis of The Unit algorithm. We display two charts of the value of 1 unit over time on our website: the Bitcoin one (denominated in SATS) and the Ethereum one (in Finney).

The value of 1 UNIT comes from the total market capitalization of our index divided by human years.

The total market capitalization is calculated by choosing cryptocurrency

$1$

with supply $S_1$

*and adding the available supplies of each cryptocurrency*$(S_c)$

*times the price of each cryptocurrency*$c$

*in terms of cryptocurrency*$1$

$(P_{c,1})$

*.*$S_1+S_2 P_{2,1}+\cdots+ S_n\ P_{n,1} = \displaystyle\sum_{c=0}^{n} S_cP_{c,1}$

We let

$N$

be the current total number of humans and $Y$

the average life expectancy at birth. And one unit of value is defined by:

$\frac{S_1+S_2 P_{2,1}+\cdots+ S_n\ P_{n,1}}{NY}.$

Last modified 8mo ago