# $RAD purchased with Revenue

Here we will look at an example of $100million a small amount of Fortnites revenue and see how it effects the price.&#x20;

#### Conclusion:

If $100 million is used to buy back $RAD tokens and assuming the buyback reduces the supply by 90%, the price of $RAD would rise from $0.01 to approximately **$66.77 per token**.

Note that this is an extreme case and assumes a high level of supply reduction. In reality, the price increase would be more gradual, but this example illustrates the potential growth in $RAD's value due to significant demand and reduced supply.

**Step 1: Determine the Number of Tokens in Circulation**

If the market cap is $150,000 and the price of $RAD is $0.01, we can calculate the total supply of $RAD tokens using the formula:

**Market Cap=Price per Token × Total Supply**

Rearranging this formula to solve for the total supply:

<figure><img src="https://2068564184-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUETV4SNTrd1spUd4KEyl%2Fuploads%2FafSU5a8CxU6ze7x6GVNU%2FScreenshot_1.png?alt=media&#x26;token=2e7215be-09e7-49a4-8aaa-bb466cf5c579" alt=""><figcaption></figcaption></figure>

#### Step 2: Calculate the Impact of $100 Million Buyback

If $100 million is used to buy back $RAD tokens, we need to calculate how many tokens would be purchased with that amount. Assuming the buyback happens at the starting price of $0.01 per token, the number of tokens purchased would be:

<figure><img src="https://2068564184-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUETV4SNTrd1spUd4KEyl%2Fuploads%2Ft5m7RQ8tAut5UNTYvThL%2FScreenshot_2.png?alt=media&#x26;token=026f751f-c88c-470d-bb2b-eb3f0fe27257" alt=""><figcaption></figcaption></figure>

However, the total available supply of $RAD is only 15 million tokens, so purchasing $100 million worth of $RAD would not be possible unless the token price increases due to demand from the buyback. This creates an imbalance between supply and demand, which drives the price of $RAD up.

**Step 3: Estimate the New Price of $RAD**

Now, let’s estimate the price impact on $RAD. If $100 million is used to purchase and burn tokens, the overall demand increases, and the supply decreases. The price will rise based on the amount of $RAD purchased with $100 million.

We will assume that the purchase of $100 million worth of $RAD reduces the supply significantly (assuming a portion of the market cap and supply are burned).

Let’s calculate the price change as follows:

1. **Original Market Cap**: $150,000 with 15 million tokens at $0.01.
2. **Total Amount Used to Buy $RAD**: $100 million.
3. **New Market Cap**: The new market cap will be the original market cap plus the amount spent on buying $RAD.

So, after spending $100 million:

<figure><img src="https://2068564184-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUETV4SNTrd1spUd4KEyl%2Fuploads%2F6x6v5wCxlFDNylAVXuIZ%2FScreenshot_3.png?alt=media&#x26;token=8cab08ec-1edc-43d1-bcb1-3e1406d7ede4" alt=""><figcaption></figcaption></figure>

Now, with the supply reduced due to the buyback and assuming all $100 million is spent on buying back tokens:

<figure><img src="https://2068564184-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUETV4SNTrd1spUd4KEyl%2Fuploads%2FZwy09qyssG4RGNDLKYvS%2FScreenshot_4.png?alt=media&#x26;token=b51eb176-7d45-4de6-836a-d9c50c82f502" alt=""><figcaption></figcaption></figure>

Assuming the buyback burns 90% of the total supply (which is a simplifying assumption to show a major price impact), the remaining supply would be 10% of the original supply (15 million tokens).

So:

<figure><img src="https://2068564184-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUETV4SNTrd1spUd4KEyl%2Fuploads%2F7OmLIBREGeOqnXv4TpoP%2FScreenshot_5.png?alt=media&#x26;token=d40f1b3e-6baf-4dc0-9686-5f5c4b53847f" alt=""><figcaption></figcaption></figure>

Now, we calculate the new price:

<figure><img src="https://2068564184-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUETV4SNTrd1spUd4KEyl%2Fuploads%2FtgaK0QgLcVfnVzF8LM7P%2FScreenshot_6.png?alt=media&#x26;token=3a6f1be8-b540-4ce4-aae0-293695d6983f" alt=""><figcaption></figcaption></figure>

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