Pricing Mechanism

What is a Pricing Mechanism?

FansHood has introduced a unique decentralized pricing formula for calculating the price of Hood as content creators' influence. The formula is represented as follows:

P=S²/A

Variable Explanations

S: Indicates the current count of distributed influence or the current quantity of Hoods.

A: Defines the steepness of the price curve, indicating whether the price increases or decreases based on the scale of influence distribution.

The key to this formula lies in its positive correlation with influence distribution. By allowing Hood prices to depend on both the current quantity of Hood sold (S) and a predefined influence factor (A), FansHood offers real-time adjustments driven by influence propagation. We will allow content creators to adjust the pricing formula when their number of fans exceeds 200K. This ensures adaptive, market-responsive pricing strategies, enhancing user engagement and incentivizing community development.