Initial price for upload

[Sotros25]

@mav

• The traders on exchanges respond to the news of the new testnet very positively, “it might be The One”, and a speculative bubble starts. Storecost quickly becomes even more expensive (in dollar terms).
• Because of the double-whammy high storecost in both safecoin and dollar terms, people rapidly reduce their rate of uploading; it’s just too expensive and makes no sense to upload at those prices.

This depends on how quickly the Network reacts to shifts in Safecoin market price as well as Network supply and demand.

@Sotros25

I wonder how quickly pricing information will travel between the market and the network itself. On the one hand, I suppose one determinant will be how quickly farmers start joining the Network if the market price of Safecoin spikes, say, 100%. On the other hand, the question of Network sensitivity remains, i.e.

• will the adjustment in rewards be more continuous or discrete?
• in what increments will rewards be adjusted?
• how much time does it take for the new rewards amount to come into play?

Per David’s response:

@dirvine

These are the key points we need to test in beta. The network should react very quickly to price changes (likely measured in minutes, possibly seconds).

While the mechanism that will deliver this high degree of sensitivity is TBD, the target for quick responsiveness seems clear.