live valuation JSON · raw

# QVTX Canonical Valuation Method

**Status:** Canonical · Locked on-chain (Chain 42000) · Auto-derived in real time
**Issued by:** QUANTVESTRIX / QVTX

---

## The method (one formula)

```
Fair Value per QVTX = (R + L + U) / S
       Floor per QVTX = R / S          (conservative, backed-only)
```

| Term | Meaning | Source |
|------|---------|--------|
| **R** | Reserves — USD value of **real assets actually held** in treasury | on-ledger reserve register, asset-by-asset |
| **L** | Liquidity — USD on the **stable side of live** QVTX liquidity pools | live pool balances |
| **U** | Utility — on-chain usage capitalized = annualized fee run-rate × 5 | measured on Chain 42000 |
| **S** | Circulating supply | 254,000,000 (Chain 42000 genesis mint) |

The QVTX market price is **auto-derived** from this formula in real time and is
**never hand-set**. It moves only when R, L, U, or S change. Every executed
conversion ("strike") records the rate **and the backing basis it was derived
from** on Chain 42000.

## Why it is defensible

1. **Only real, verifiable inputs count.** No reserve, no value. The floor is
   literally "real assets ÷ supply" — arithmetic, not opinion.
2. **Conservative by construction.** Utility is capped at a 5× run-rate multiple;
   full supply is used as the denominator (lowest per-token value).
3. **Transparent.** The reserve register, pool balances, supply, and usage are
   all auditable; the price is reproducible by anyone with the same inputs.
4. **Tamper-evident.** The method and each strike are committed to Chain 42000.

## Honest current state

If reserves and liquidity are zero, the backed **Floor is $0 per QVTX**, and the
engine reports exactly that — it does not invent a price. QVTX is "UNPRICED" until
real backing exists. Value rises **only** as real reserves, liquidity, supply
discipline, and usage grow. This honesty is the point: the number is worth
trusting precisely because it refuses to exceed what is real.

## Worked reference (at S = 254,000,000)

| Backed price you can defend | Real backing (R + L + U) required |
|---|---|
| $0.01 | $2,540,000 |
| $0.10 | $25,400,000 |
| $0.50 | $127,000,000 |
| $1.00 | $254,000,000 |

## Implementation (live)

- `qvtx_valuation.py` — computes R, L, U, S and the value.
- `qvtx_exchange.py` — `refresh_qvtx_rate()` auto-derives the QVTX price from the
  valuation on every quote; `strike()` posts the rate + basis on-chain.
- Basis selector: `QVTX_RATE_BASIS = fair | floor`.

*This document is the canonical statement of the method. Any QVTX valuation that
does not reduce to (R + L + U) / S over real, verifiable inputs is not canonical.*