New Valuation Method for Blockchain Economies: Decentralized Gross Production Value

Traditional valuation methods for blockchain networks have misconceptions, treating them simply as enterprises and using stock valuation formulas. In reality, blockchain networks resemble emerging digital economies, with their own currencies and economic systems.

To more accurately assess the value of the Blockchain network, we propose the concept of Decentralization Gross Domestic Product (GDP). This approach considers not only the total money supply but also the economic activities of the entire Blockchain ecosystem.

The main indicators of decentralized GDP include:

1. Market Capitalization: A measure of currency sovereignty and economic scale
2. Total Locked Value ( TVL ): Reflects the scale of DeFi activities.
3. Transaction fees: Measure the income generated from economic activities.
4. Stablecoin: Represents foreign capital inflow
5. Protocols, Applications, and NFTs: Representing Economic Infrastructure and Cultural Industries
6. Protocol and application fees: Measuring the economic activity of enterprises in the ecosystem.

By integrating these indicators, we can more comprehensively assess the scale and vitality of the Blockchain economy. Taking Ethereum as an example, its decentralized GDP is approximately $700 billion, far exceeding that of other Blockchain networks.

This valuation framework helps investors and developers better understand the true value of the Blockchain network as a digital economy. It also provides new perspectives for predicting the future growth of the Blockchain economy.

Overall, the decentralized GDP model provides us with a valuation method that is closer to the essence of the blockchain economy, helping us better grasp the development prospects of this emerging economic form.