Decred On-Chain: Ticket Funding Rates – Permabull Nino

A Tool for Gauging User Sentiment

On-chain analysis is a nascent and emerging field of study within the cryptocurrency space and within the ledger analysis space at large, which includes traditional work done by internal accountants, auditors, and consultants alike.

Among these ledger data specialists reigns one overarching principle: establish / identify economic truth via thorough research, and communicate findings in a digestible manner for outside parties to engage with.

The work of internal accountants / auditors emerges at various financial reporting deadlines, and consultants shine via their various deliverables to their clients.

Cryptocurrency on-chain analysts aim to establish and communicate economic truths about the public ledgers of their choice via reports such as these. With this in mind, the previous pieces within the “Decred On-Chain” series explored and established the following:

(1) Decred On-Chain: A Look at Block Subsidies

• Public ledgers are digital entities that leverage block rewards to incentivize / bootstrap growth
• Block rewards are fundamental to network valuation

(2) Decred On-Chain: The Ticket Pool VWAP

• Cost basis that flows within the proof of stake ticketing system impacts user behavior and ultimately reflects itself in short / long term price action

(3) Decred On-Chain: HODLer Conversion Rates

• DCR flows dominated by HODLers, marginal buyers, and marginal sellers reflects itself in short / long term price action

In an attempt to further explore the dynamics of the Decred blockchain, we will aim to establish the following truth within this piece:

The plan of attack goes as follows:

(1) Overview of Tickets & the Ticket Pool

(2) Rate of Return for Tickets

(3) The Bitmex Perpetual Swap

(4) Similarities Between Tickets and the Bitmex Perpetual Swap

(5) Ticket Funding Rates Baselines

(6) Ticket Funding Rates Calculation

(7) Ticket Funding Rates Charts & Analysis

(8) Conclusion