Purchase Coordinates

Acquiring coordinates on iCoordinates.xyz is a personalized experience driven by a dynamic pricing mechanism. The initial value, known as the Base Price, is set to ensure accessibility, typically starting at 1 USDC per coordinate. However, this price evolves based on demand and popularity, adapting to the expanding range of coordinates. The Current Product Value reflects the total cost of available coordinates, calculated by multiplying the unsold coordinate count by the current unit base price. As coordinates are claimed, the price adjusts, aligning with a dynamic and equitable valuation that allows users to participate in a vibrant and evolving canvas. Explore, purchase, and contribute to the growing tapestry of iCoordinates.xyz.

Sure, let's break down the pricing mechanism in a way that's accessible to the end user.

The price mechanism for purchasing coordinates is calculated based on a few factors to ensure a fair and dynamic price that reflects demand and availability. The equation for the price calculation is as follows:

$Price=BasePrice×PopularityMultiplier×DemandMultiplier$

Here's what each component means:

1. Base Price : This is the foundational price for a single coordinate. It is determined by the current product's total value divided by the total number of available coordinates. Essentially, it's the cost per unit of a coordinate at the base level.

2. Popularity Multiplier : This factor accounts for the popularity of the platform and is influenced by the rate at which transactions are occurring. It is calculated as follows:

$\text{PopularityMultiplier} = \frac{\text{OneMinute}}{\text{TimeSinceLastTransaction}}$

where:

• $\text{OneMinute}$ is a fixed value representing one minute in some unit (e.g., USDC).

• $\text{TimeSinceLastTransaction}$ is the time elapsed since the last transaction related to coordinates.

The idea here is that if there has been more recent activity (higher demand), the popularity multiplier will be higher, and thus, the price will be adjusted accordingly.

1. Demand Multiplier : This factor is determined by the demand for coordinates and aims to ensure that as the number of coordinates sold increases, the price adjusts proportionally. It is calculated based on the number of coordinates sold as a percentage:

$\text{DemandMultiplier} = \frac{{\text{CoordinatesSold} + 1}}{100}$

where:

• $\text{CoordinatesSold}$ is the number of coordinates sold so far.

This multiplier ensures that as more coordinates are sold, the demand increases, and consequently, the price adjusts to reflect this demand.

Putting it all together, the price for purchasing a coordinate is determined by the base price, which is adjusted by the popularity multiplier and the demand multiplier. This mechanism ensures that prices remain fair and dynamic based on platform activity and demand for coordinates.

Determination of Base Price

The Base Price ($BasePriceBasePrice$) is a fundamental component of the pricing mechanism. It's essentially the starting point for calculating the price of a single coordinate. The calculation of the base price is based on the current product value and the number of unsold coordinates.

The equation for determining the base price is as follows:

$\text{BasePrice} = \frac{{\text{CurrentProductValue}}} {{\text{NumberofUnsoldCoordinates}}}$

Here's what each component means:

1. Current Product Value ($CurrentProductValue$): This represents the total value of the product, which is essentially the total value of all coordinates that have not been sold. It's the sum of the initial value of each coordinate.

2. Number of Unsold Coordinates ($NumberofUnsoldCoordinates$): This is the total count of coordinates that have not been sold. It's calculated as the difference between the total possible coordinates and the number of coordinates that have already been sold.

To remove the factor of popularity multiplier which depends on the free will of the purchaser, the product of base price and demand multiplier is increasing as below:

The idea behind the base price is to distribute the total value of the product equally among the remaining unsold coordinates. As more coordinates are sold, the base price per coordinate may change because the remaining value of the product is distributed among fewer unsold coordinates.

This mechanism ensures that the base price is dynamic and adjusts based on the value of the product and the number of unsold coordinates, providing a fair starting point for calculating the price of each coordinate.

The Current Product Value ($CurrentProductValue$) is initially set to ensure that each coordinate starts at a fair and consistent value, typically 1 USDC. It is calculated based on the initial coordinate range (X range and Y range) where each coordinate holds the same starting value.

$CurrentProductValue=Initial Base Price Per Coordinate×Total Possible Coordinates$

$Initial Base Price Per Coordinate=1 \ USDC$ (This is set as the starting value for each coordinate.)

$Total Possible Coordinates=Initial \ X \ Range×Initial \ Y \ Range$

So, the $CurrentProductValue$ initially represents the sum of 1 USDC for each possible coordinate in the initial coordinate range.

Now, when the coordinate range expands (e.g., X range or Y range increases), the $Total Possible Coordinates$ increases. As a result, the $Initial Base Price per Coordinate$ will be distributed among more coordinates, causing the $BasePrice$ for each coordinate to decrease. The adjustment is made to maintain a balance, ensuring that the total value of the product is still equally distributed among the coordinates.

$\text{New Base Price per Coordinate} = \frac{{\text{CurrentProductValue}}} {{\text{New Total Possible Coordinates}}}$

$New \ Total \ Possible \ Coordinates=New \ X \ Range×New \ Y \ Range$

This ensures that even with the expansion of the coordinate range, the fundamental principle of providing a fair starting point for each coordinate is maintained, allowing for dynamic adjustments in the base price while preserving the overall value of the product.