Maidesafecoin capitalisation and farming

We had 452,552,412 MAIDSAFECOIN supply in circulation . when we farm SAFECOIN the maximum coin will be 4,3 billion . How the value of maidesafe will be grow. maidsafecoin will be only the coin for trading or dissapear and trade with safecoin ?

1 Like

When the network goes live you can exchange the Maidsafecoin with safecoin in 1:1 ratio. The mining starts after the network goes live. As per calculation and assumptions reaching to 4.3 bil coin might take long.

2 Likes

Would be interesting to see a prognosis with different usage and adoption rate, later when the network will be fully tested with coins in circulation.

1 Like

there’s no delay in time to change maidsafecoin to safecoin ?

1 Like

As per discussion, we would have 6 months or around to exchange. Its not confirmed yet as there is a long way to go before that.

5 Likes

Some exchanges will likely do the exchange of the coins held on their exchange. So one day the trading will be in MAID and the next will be in SAFEcoin. They cannot trade both MAID and SAFEcoin at the same time since its one or the the other.

3 Likes

Would sure be nice to see an updated head to head tracker on SAFE vs SIA vs STORJ earnings per GB at any point in time. I reckon that will come at some point - might as well plan ahead, given the draw for farmers will be big.

1 Like

The total number of safecoin will indeed increase, so that will to some degree tamp down a prospective exponential increase, however consider the following (and please correct me if I’m wrong on any point).

  • 10% of the network sold up front constitutes a ‘fair launch’, incentivizing future participation.
  • For the number of safecoin to increase, the network must be used, and the coin will be paid to those who enable the use on an ongoing basis.
  • The people who bought maidcoin paid cash to let the project exist.
  • The rest of the maidcoin go to those who ‘buy in’ by providing the hardware to let the network scale with legitimate use
  • The price of safecoin will increase with adoption because increased use of the network is real value.
  • The price will however be attracted towards the marginal cost of providing useful scaling … if it is easier to get safe with cash then hardware, people will buy, and if the price is higher than the marginal cost of providing new servers and bandwidth, people will provide those instead.
  • A pretty elegant design for a functional, balanced economy. Speculative hoarding will be punished by those who can add functionality, and adding functionality will be balanced by need for the network.
  • Even with all coins in play (won’t happen), if maidsafe can rival dropbox for utility, then we are talking $2 per coin. (market cap to market cap). But maidsafe can be much much more…
2 Likes

‘Punished’ may have been a bad word choice; I just meant that with many .e.g. POS cryptos, the only way to get more if it is being hoarded is to pay up. With maidsafe, there is another escape valve where instead of price instability there is an escape valve where you can add additional resources to the network and gain maid that way instead. Like bitcoin mining, but the barriers for entry are much much lower and democratic.

3 Likes

You didn’t mention recycling of the coin. This will have a major impact on the total coin increase.

As resources (PUTs) are paid for by the user the coins spent are destroyed so they are available to pay farmers.

It is very likely that the number of coins existing on day 30 will be less than the number existing on day 1. I say this because I expect that people will be doing a whole lot more uploading than browsing. The sites have to be uploaded before anyone can browse them and all the files people put up will in my opinion exceed the farming.

Also there is 5% placed in reserve for later. This is the 5% that actual investors in Maidsafe the company can swap their shares for coins if they desire in the future.

Also when a coin creation attempt is made a “random” coin address is generated and if that coin exists then no coin is created (obviously) and the farmer is not paid that time. This means that as the total number of coins increases the success rate of coin creation decreases. This provides a means to slow down the actual coin increase as the total coin increases.

The effect of this is coin scarcity and would see the actual $$$ value increase. So the farmers will still be getting the same or more $$$ value over time, just less safecoin for the same amount of farming (this assumes farming rate is constant).

For a farmer according to the current safecoin RFC, when they perform a successful GET, the algo uses the farming rate to see if they are to try for a coin creation. The effect of this is that the farmer gets one chance for every 1/FarmingRate GETs on average. Then if the random coin address is not existing then the coin is created and given to the farmer.

3 Likes

Thanks for the useful addition! I guess that the precise parameters of the farming algorithm will produce some interesting dynamics. In the long run though, the combination of $/safe, safe/GET rates and safe/PUT rates must balance to make it worthwhile to upload, but rewarding enough to provide enough bandwidth to make the network useful. I can very much see scenarios where this results in stably expensive Safecoin, but I do wonder every now and then if there are multiple equilibria in that system. The experiment continues.

2 Likes