How Can a “Logarithmic” Version of Metcalfe’s Law Be Used to Provide a More Conservative Valuation?

A logarithmic version of Metcalfe's Law suggests that the value of the network grows proportionally to a factor less than the square of the users (e.g. n^1.5 or n log(n)). This approach provides a more conservative valuation by dampening the aggressive exponential growth assumption of the original n^2 formula.

It acknowledges the diminishing returns of adding new users, especially when those new users may contribute less economic value than the early adopters.