The Butter Index: Understanding the Real Value of $NIGHT
Cryptocurrency prices can be difficult to relate to everyday life. The Butter Index makes this easier by showing how many $NIGHT tokens are needed to buy one pound of US butter, specifically Grade AA butter. Grade AA is the highest quality classification of butter in the United States, based on flavor, texture, and appearance.
The index combines two data sources. It uses the weekly US butter price from CLAL.it, an agricultural market data provider, and multiplies it by 2.5 to estimate the retail price. Retail price is the price consumers pay in stores, which is higher than wholesale price because it includes costs like transportation and store margins. The index then compares this retail butter price to the daily price of $NIGHT from CoinMarketCap, a platform that tracks cryptocurrency market prices.
This calculation shows how much real world purchasing power $NIGHT has. Purchasing power means how much of a physical good a currency can buy. If $NIGHT becomes more valuable, fewer tokens are needed to buy butter. If its value decreases, more tokens are required.
The Butter Index helps connect Midnight Network’s digital token to a familiar everyday product. By translating $NIGHT into something tangible, it provides a simple and clear way to understand its real world value.