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Assumptions - Pre-Fork
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AssumptionMetricRationale / Source
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Gross Revenue$10,000,000 Assume FastRelay has an average daily volume of $20 million with a .15% fee.
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Annual Revenue Growth80%Estimate on widespread adoption. This could easily be much higher.
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# Engineers10 peopleAbout the size of the Paradex team
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Avg Cost per Engineer$200,000 Conservative average considering demand in the crypto industry.
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Operations/Misc$1,000,000 Arbitrary assumption. Could easily be changed
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Marketing Expenses$1,000,000 Need to get the word out.
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Expense Growth30%Arbitrary assumption. Could easily be changed
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Discount Rate40.0%Venture capital rate of 30-70%
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Terminal Growth Rate5.0%About twice historical inflation rate
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Assumptions - Post-Fork
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AssumptionMetricRationale / Source
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Gross Revenue$7,000,000 Assume a 30% decrease in revenue due to reputation damage, and possibly lower volume (no shared liquidity pool).
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Annual Revenue Growth45%Slower growth rate due to absence of liquidity pool and reputation damage.
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# Engineers20 peopleIncrease team by 10 people, which is the current size of 0x team.
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Avg Cost per Engineer$200,000 Conservative average considering demand in the crypto industry.
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Operations/Misc$1,000,000 Arbitrary assumption. Could easily be changed
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Marketing Expenses$1,500,000 Increase in marketing to ensure reputation after fork
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Expense Growth30%Arbitrary assumption. Could easily be changed
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Discount Rate40.0%Venture capital rate of 30-70%
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Terminal Growth Rate5.0%About twice historical inflation rate
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