Under the Cointime Economics framework, we established a set of primitives that describe the relative degree of influence that Miners (Producers) and Investors have on the network. It can be seen that both pairs of Liveliness and Investorness, and Vaultedness and Producerness, appear to be proportional to each other. We call this the AVIV Relationship.

• 🟡 'Investorness' denotes the relative contribution of transactions and trade by coin holders and investors (as well as investor-dependent entities like exchanges) to the valuation of Bitcoin’s Realized Cap. Investorness has tended to increase over Bitcoin’s lifetime, denoting a growing influence of this cohort over time.

• 🟣 'Producerness' denotes the relative contribution of miner production costs to the valuation of Bitcoin’s Realized Cap. Producerness has tended to decrease over the network’s lifetime, influenced by both declining issuance via halvings, as well as market boom-and-bust cycles. Producerness is equal to the ratio of Thermocap and Realized Cap.

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).