# Hybrid Pricing for Crude Mining Lenses

With the price of Crude Mining Lenses quoted in $EVE, it is necessary to consider how any potential volatility of the $EVE token would impact gameplay.

A hybrid pricing approach to the sale of Crude Mining Lenses is proposed, where each lens is priced in $EVE, so the price of the lenses rises and falls in correlation with the price of the $EVE token. The hybrid aspect of this pricing model refers to the fact that it maintains a fiat-based price threshold. Once the $EVE token exceeds the threshold, the pricing of the lens in fiat terms remains capped, and the number of $EVE tokens required for payment does not increase further.

The hybrid-pricing of new Crude Mining Lenses can be expressed by the following formula:

$$
P =min(p\_Eq, kp\_Eq^*) = p\_Emin(q, kq^*)
$$

Where:

             $$P$$ = the price of the Crude Mining Lens expressed in dollars

             $$P\_E$$ = the price of the Crude Mining Lens in $EVE tokens 

             $$min(p\_Eq, kp\_Eq^*)$$  = the lower of the two values, $$p\_Eq$$ and $$kp\_Eq*$$ (explained below)

             $$p\_Eq$$  =  the floating price of the lens based on the price of $EVE,\
                           calculated as the lens price in $EVE multiplied by the\
                           price of the $EVE token

             $$kp\_Eq^\*$$  = the fixed-price cap, calculated as the lens price in $EVE multiplied\
                               by the estimated stable value of $EVE (![](data:image/png;base64,R0lGODlhDQARAHcAMSH+GlNvZnR3YXJlOiBNaWNyb3NvZnQgT2ZmaWNlACH5BAEAAAAALAAAAwAMAA0AhQAAAAAAAAAAOgA6ZgA6kABmtjo6Ojo6kDqQ22YAOmYAZmY6AGY6ZmZmOmaQkGaQ22a2tpA6AJA6OpCQZpCQ25C2/5Db/7ZmALZmOrbb/7b//9uQOtu2kNv///+2Zv+2kP/bkP//tv//2wECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwECAwZDQIBwOAxRiMiPwfFADkENBsJZPAJEmMBgUnFeCJ1QwoIUk0GHDtIDBmwKTnaHs5giRREBREKmAkIKGn4AcoMbAxlOQQA7)) and then multiplied by a\
                               policy factor $$K$$ set to establish a reasonable maximum market price

To illustrate, if we assume the following:

Crude Mining Lens in $EVE                =              5 $EVE

$EVE token price                                   =              $2 USD

Estimated stable $EVE value             =              $0.667 USD

Factor $$k$$                                                    =              1.5

Then, using those values:\
Floating price

                $$p\_Eq$$                                           =              5 $EVE ✕ $2USD

                                                                   \=              $10 USD price of a Crude Mining Lens in fiat dollar terms

Fixed-price cap

                $$kp\_Eq^\*$$                                      =              1.5 ✕ (5 $EVE ✕ 0.667)

                                                                   \=              $5 USD capped price of a Crude Mining Lens in fiat dollar 

Fiat pricing

               $$P$$                                               =              min($10, $5)

                                                                  \=              $5 USD price of a Crude Mining Lens in fiat dollar terms

If the current token valuation of $EVE exceeds the reference value, scaled with the policy constant, the formula will set the dollar price of a lens to the capped maximum. In the example, the lens would be priced at $5.00. At a token price of $2.00, this corresponds to an actual cost of 2.5 $EVE, instead of 5 $EVE.