Coef × TVL^Exp ÷ Supply
Network value grows proportionally to the square of active users/nodes. Originally developed for telecommunications, this model has been empirically validated for Bitcoin and Ethereum by academic researchers (Alabi 2017, Peterson 2018). Uses TVL as a proxy for network activity. The 1.5 exponent (between linear and quadratic) accounts for real-world network friction.
Limits: DAU-to-value coefficient varies significantly; 1.5 exponent may not fit all conditions
| Constant | Value | Meaning |
|---|---|---|
METCALFE_COEF | 2 | Metcalfe coefficient |
METCALFE_EXP | 1.5 | Metcalfe exponent |