# Friend Tech V1 - Price Model

**URL:** https://talk.markets/t/friend-tech-v1-price-model/2160
**Category:** Archive
**Tags:** archive
**Created:** [4 May 2024 13:27 UTC](https://talk.markets/t/friend-tech-v1-price-model/2160 "2024-05-04T13:27:30Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![Lux](https://talk.markets/user_avatar/talk.markets/lux/32/15251_2.png) [@Lux](https://talk.markets/u/Lux)
#### Post date: [4 May 2024 13:27 UTC](https://talk.markets/t/friend-tech-v1-price-model/2160/1 "2024-05-04T13:27:30Z")

</div>

Some key takeaways about the pricing model. The price increases exponentially, based on the no. of outstanding shares.

- There is a potential problem with this:  
The 500th member will have to pay ±15.6Ξ to join a room, 250th member = 3.9Ξ, 100th member = 0.625Ξ.
- This encourages smaller groups, and perhaps the creation of alt-groups.

The sell price starts at 0 for 1 share, then it’s always the previous buy price. This means you can’t profit from buying and instantly selling 1 share.

- The model incentivises buy & hold rather then quick flips.

The spread USD value is higher when fewer shares are outstanding. Total fees are 10%.

- The protocol fee is set at 5%.
- The other 5% goes to the room owner.
- With 10 outstanding shares, the spread is 19%.
- With 50, it’s 4%.
- With 250, it’s 0.81%, lowering to 0.2% at 1000 shares.

## Overview by milestone

 ![image](https://talk.markets/uploads/default/original/2X/3/34c8a35667f5438fa261369aa9c2dfadeba04d93.png)

## Buy Price in ETH @ N outstanding shares

 ![image](https://talk.markets/uploads/default/original/2X/6/608c4cf51641a99236d4ff93c6f2351250670dde.png)

Source data: [Google Docs: Price Model](https://docs.google.com/spreadsheets/d/1AW6by8ZXqD1vV3z4TfC8N7SZwt8RD-lFT-G9_hGMdPk/edit?usp=sharing)