Called "Cointime Economics," the framework paints "a more accurate picture of the real economic weight of each bitcoin in the network" and includes a measure of the last time each bitcoin was transacted.
"The importance of a single bitcoin should vary based on the last time it moved," the report said. "The information value of a bitcoin that had been unmoved for 10 years is more important than one that had been unmoved for one week."
The Cointime Economics framework
The report described current industry-standard frameworks as leading to "analyst-made decisions that may be prone to inaccuracies." Adjusted supply and free-float supply were highlighted as potentially leading to analyst errors.
The new framework uses a unit of measurement called a Coinblock, which looks at the number of blocks produced during the period in which a bitcoin remained unmoved.
"It provides a more precise version of the market-value-to-realized-value (MVRV) ratio. It gives a more accurate measurement of bitcoin’s inflation rate over time, its volume, and its time-weighted cost basis," the report added.
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