Forbes Article - Some discussions on MAIDSAFE ICO


#41

You answered your own question. There are unknowns about reducing the supply of coin for a commodity backed currency because that is not how any normal economy works. In theory, you are correct. The market should adjust by increasing the price of a coin via deflation, but until that market adjustment occurs, you are literally destroying market cap. As far as I know, there has been nothing put forward about the algorithms they are going to employ for the recycling and farming methods.

They have already stated, though, that we will never realize the full 4.2B coin limit which means farming will get extraordinarily more difficult as time goes on, naturally raising prices (ala BTC), but they are also employing a recycling which will (however temporary) remove coin from the market. As far as I am aware, said recycling might not necessarily result in a direct 1 to 1 replacement of that coin back into the market via farming and they could adjust the market by removing more coin then they allow to be farmed. I know this is all automated, so I assume there will always be a trickle of more coin entering then being removed, but as we see from BTC, I’m not so sure that is sustainable.

BTC has run into the problem where it is more expensive to mine then what is returned in coin. If we are to have a self sustaining farming market, I don’t see how that would be plausible to have farming so difficult it is nearly impossible to retrieve a reward, and why the every day user would accept those terms while giving up their resources. Thus, I see a need to destroy a lot of coin and send it back out to farmers via recycling to maintain the worthwhile nature of farming. And yes, I realize “destroy” isn’t really the correct term, but in a way, that is the effect of receiving payment and reintroducing the coin elsewhere.


#42

But why? This statement shows that the buying of resources is not really understood by you.

It will be more difficult as the total issued coin increases, but there is no guarantee that in any period the total issued coin will actually increase.

But extraordinarily suggests many hundreds to 10000 times more difficult as a minimum. If the network got to that point then there is virtually no more coin to issue (<0.1%) and the network is dying. WHY? Because it means that no one is really uploading data anymore and the network is containing virtually all old data and everyone is hoarding SAFEcoin (or ignoring it)

“however temporary”

Suggests you don’t grasp the dynamics.

This suggests you are unable to find reasons. Because BTC does not recycle at all and has no method of it. It is increasing the coin supply ONLY and has no recycling that you can use as a parallel

Again BTC is halving each time it reaches the cycle of blocks. In 4 halvings it will be 1/16 the rewards and after the fifth it will be 1/32. If the SAFE network got to 1/32 (27.2 times more difficult to farm a coin than at start) of the coin left unissued for a long period then we have a dying network and who cares about all the analysis, lets pack our bags up and forget SAFE, because everyone else will be too. It would mean very few if any people are uploading new data (see above)

Apart from the above “dying network” this statement shows you don’t really understand the recycling, even though you think you do. History shows that new data is always increasing and the rate of increase is increasing (its accelerating in other words) and the most accessed data is new data. Once data is 6 months old it is only occasionally accessed and at 12 months its approaching rarely accessed even though it is still required for that rare access. So if the coin reaches 99.95% issued making it 1700 times more difficult than early on, it would mean that recycling has all but stopped and virtually no one is uploading. The network is dead, it is deceased, no longer for this world, gone to meet its maker, it is no longer.

You do realise this is the effect of any store. Accept coin for goods and spend coin. Except this store has a safe with around 4 billion coins at the start of operations. Just the goods are data.


Maybe after 10 or 20 years (according to projections) we might see 80% of the coin issued. If the network is still alive and kicking then the coin would be worth at least an appropriate amount to make it worth farming. So even though its 4.25 times harder to farm a coin the price would be that much higher (at a minimum) otherwise the network would have died long before that.

But look at the price of MAID, it is more than 10 times the price before any farming has started. So even if it only doubled in price each 10% increase of total coin existing, people would be flocking to farm.

You like taking BTC as your example, its price has increased by 10 times many times since its start and yet each block is giving 1/8 now than what it originally did. What is it? 100000 times now than originally. So by your example of BTC SAFEcoin will blossom and farmers will be more than happy if the network ever got to 99% of coin issued. But any sane analysis of recycling (data purchasing/consumption) shows that 99% is very unlikely for decades.


#43

:bird: squaawk :rofl:


#44

A post was split to a new topic: Site with ICO Listings


#45

What is the date for the beta release? Thanks in advance! :grinning:


#46

There is no date you will get in this forum

https://maidsafe.net/#roadmap we’re currently at alpha 2 and maidsafe is programming like crazy to release alpha 3 asap - there will be an alpha 3+4 network before the beta with safecoin implementation and test farming

Best thing is to follow the dev updates that are released on Thursdays and see where we stand on which of the tasks. =)
Since many things this project does have never been done in the combination maidsafe does it (or even not at all) it would be a waste of time to try and estimate how long it might take to solve problems you don’t know of yet… And is better to just make it happen =)