No the network is paying out from its own reserve of unissued coin. No One has lost anything, the network did not take from everyone’s “wallet”.
The network generated the coin. It was the networks to give. If the network ever runs out of coin at a particular time then it doesn’t issue the coin. It doesn’t take from anyone, it does not raise the price of anything because it ran out.
The put cost does NOT account for the PtP or PtD coins it issued. Look at the safecoin RFC, so it does not take from anyone nor cost anyone. Hell even farming rewards is not “earmarked” out of the put costs. There is a disconnect between paying for a put and generating a coin to pay for services.
EVERY coin issued by the network comes back to the network.
From the network view, there is no loss, there is no problem.
Maybe this is why you cannot see. You do need to see it from the network’s need, treat the network as if it did exist as part of the coin cycle.
The real question is not if the network can support itself paying users for doing things for it. But to develop the methods/algorithms that do it fairly. No one has problems with paying the farmer for doing their part for the network, after all it is only the network paying rewards to the farmer. It has NO connection to the put cost either. The farmer getting paid is not from anyone “wallet” but the network generating a new coin for the farmer.
From the network side coins generated will find their way back to the network.
From the users point of view they are worried about what the coin they get is worth in fiat terms and that is a different issue, the network is not concerned.
Gaming the system well pirates will be doing that with or without PtP. Just being able to have secure storage for their pirated goods is worth a lot. Tell me how much is a pirate going to get once PtP is included. Well if what you say is right then 1000’s will copy each item which is 1000x the coin given to put that work once onto the network. And the PtP spread across the 1000 pirates. So once they game they get next to nothing. How long are they going to pay to make extra copies when they get back less than they paid because of all the others uploading the same stuff to make next to nothing. Yes some may get a little but it hurts the network nothing.
So you are saying because some will pirate some stuff and game the system, wasting their time/bandwidth to make a tiny amount if at all. That you should not give the real artists something by the network because they upload content and make the network more usable.
AND still have all the other good ideas to support and pay the artists that people think of. Have the APPs that allow the artists to sell, etc.
But from the network’s view PtP is encouraging more quality uploads, which is better for everyone.
BTW I really don’t see why you cannot understand the taxation issue.
- If you don’t refer to any payments as taxation then its fine to see it as just paying for uploads. The network takes in coin and just deletes it. No earmarking some for farming and PtD, PtP or anything else it just deletes it. If you have coin in you wallet it also is not touched, no taxation.
- but as soon as you refer to a portion as being taxation, then looking at the whole it is all taxation. Just like all the money you pay a government, 100% of that money is taxation. The network is like the government, it is the network it takes all the money paid to it so it is 100% taxation by the network, that governs the operations of the network.
Basically I am saying that referring to any of what is paid for upload as taxation for this or that then you have to refer as all of it being taxation because that is all the network does, take coin and pay coin out for services.