The concept of Liveliness was first introduced in 2018 by Tamás Blummer as a measure of how ‘active’ a blockchain network is (cumulative cointime destruction) relative to its aggregate age and size (cumulative cointime creation). Liveliness was a breakthrough innovation in on-chain analytics and is a remarkably elegant, yet information dense, concept. Within the Cointime Economics framework, the opposite metric, Vaultedness was established, describing the relative 'inactivity' of a blockchain network.

• 🔴 Liveliness moves between the extremes of 0 (where no coin has ever been spent) and is asymptotic to a value of 1 (possible only theoretically in a block where every coin in the supply is spent). Liveliness is calculated as the cumulative sum of coinblocks destroyed, divided by the cumulative sum of coinblocks created.

• 🟢 Vaultedness is the inverse metric, describing the relative ‘inactivity’ or relative coinblock storage within the Bitcoin network. Vaultedness is calculated as the cumulative sum of coinblocks stored, divided by the cumulative sum of coinblocks created, or otherwise as 1 minus Liveliness.

Coined By

This metric was developed within the Cointime Economics framework for Bitcoin. This project was a joint venture between Glassnode and ARK Invest, with full details available in two formats: an overview primer (Version I published via ARK) and a comprehensive guide for specialists (Version II published via Glassnode).