The Unit Docs
Search…
⌃K

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).

How to Obtain The Unit value

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

Calculating the Total Market Capitalization

The total market capitalization is calculated by choosing cryptocurrency
11
with supply
S1S_1
and adding the available supplies of each cryptocurrency
(Sc)(S_c)
times the price of each cryptocurrency
cc
in terms of cryptocurrency
11
(Pc,1)(P_{c,1})
.
S1+S2P2,1++Sn Pn,1=c=0nScPc,1S_1+S_2 P_{2,1}+\cdots+ S_n\ P_{n,1} = \displaystyle\sum_{c=0}^{n} S_cP_{c,1}

Finally

We let
NN
be the current total number of humans and
YY
the average life expectancy at birth. And one unit of value is defined by:
S1+S2P2,1++Sn Pn,1NY.\frac{S_1+S_2 P_{2,1}+\cdots+ S_n\ P_{n,1}}{NY}.