ARK Invest and Glassnode unveiled a new metric for analyzing bitcoin supply and demand dynamics in a report released Thursday.

Called "Cointime Economics," the framework paints "a more accurate picture of the real economic weight of each bitcoin in the network" and includes a measure of the last time each bitcoin was transacted. 

"The importance of a single bitcoin should vary based on the last time it moved," the report said. "The information value of a bitcoin that had been unmoved for 10 years is more important than one that had been unmoved for one week."

The Cointime Economics framework

The report described current industry-standard frameworks as leading to "analyst-made decisions that may be prone to inaccuracies." Adjusted supply and free-float supply were highlighted as potentially leading to analyst errors.

The new framework uses a unit of measurement called a Coinblock, which looks at the number of blocks produced during the period in which a bitcoin remained unmoved.

"It provides a more precise version of the market-value-to-realized-value (MVRV) ratio. It gives a  more accurate measurement of bitcoin’s inflation rate over time, its volume, and its time-weighted cost basis," the report added.