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

## Finally

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