Which is one of reasons that Doge is nearly dead.
Last time it got saved by merged mining, this time there is nothing to save it from its final descent to 0.
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We will see what happens. The dogecoin inflation actually becomes less and less each year when measured in percentage increase.
If a fiat currency has an inflation of 1% per year, then the money supplies grows exponentially.
If safecoin has a linear inflation of say 1 billion coins per year, then the total supply of safecoins is:
Year 1: 1 billion
Year 2: 2 billion
Year 3: 3 billion
…
Year 99: 99 bilion
So between year 1 and 2 the coin supply doubles (100% inflation). Between year 99 and 100 the coin supply only increases a fraction (around 1% inflation).
Maidsafe should discuss with top economy experts about what kind of inflation safecoin should have to become optimal.
I really like the idea of app developers and content providers being able to earn safecoins automatically from the SAFE network. But it could make people try to game the network like crazy. For example, a botnet with 200,000 computers accessing a single app all the time to increase the amount of safecoins the app earns.
So the app and content rewards may actually be much more problematic than providing free data storage for both public and private data. People put in huge amounts of effort to come up with ways how to game information systems for profit.
This is going off OP, please start a new thread if you wish.
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Yes, it was only a comparison with free data storage to illustrate the potential bigger risk. There is already a thread about the issue with automatic app rewards: Why wouldn’t app developers stuff their GET requests?
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Such as Ben Bernanke and Mario Draghi, as noted previously.
- MaidSafe didn’t raise enough money to pay these experts ($50,000 for a pizza and Pepsi lunch with Ben, anyone?)
- Why not simply piggyback on their existing “knowledge” and set the farming rate based on the weighted % change in M2 of USD and EUR?
Some of the experts need to have knowledge about cryptocurrencies. That’s a new kind of economic model in some ways, such as the inflation of the coin supply must take the rapid growth of the network into account. My own guess is that a linear inflation would be excellent. The coin supply would increase much in the beginning (percentage-wise) precisely when it’s needed (when the network grows fast, actually exponentially).
Again, this is going off OP, please start a new thread if you wish.
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Ok, I have now posted a comment in this thread: Is the Safecoin Economy Deflationary and would it be better with Inflation built in?
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What would prevent someone from forking the SAFE network source code and launch a FreeSafeNet? If the fork has free data storage for both private and public data, and the ordinary SAFE network has 100% cost for private data and 25/100 % cost for public data, wouldn’t it be outcompeted by the FreeSafeNet?
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You will be free to do that.
Nothing
Who knows but going by most responses in this thread it seems free data storage for both private and public data on a SAFE Network will ultimately fail.
If you’re a farmer, would you rather receive safecoins in exchange for your resources or nothing at all?
I’ve been claiming throughout this forum that there is nothing new in the cryptocurrencies model.
It’s only you who thinks that crypto is some sort of Philosopher’s Stone that will bring about untold riches and eternal prosperity for everyone. A currency (crypto or any other) is merely a unit of accounting and payment. It doesn’t create shit.
I don’t have anything against people paying money for experts to determine optimal inflation, but I’ll bet you $100 that you’ll end up disappointed because the optimal inflation is determined by the market, for free.
(Experts are needed, but not experts in organized crime (centrally introduced inflation). MaidSafe should engage experts in free market and game theory, to prevent freeloading).
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The FreeSafeNet would simply rename safecoin to storecoin or something like that. They can even keep the original farming reward model and simply remove the lines of code for the withdrawal of safecoins for PUTs from the users’ wallets. And they maybe need to tweak the reward a bit in case the inflation would become too large.
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Probably everybody asked this in other threads but what if I store all my data which is as large as your entire FreeSafeNet?
GETs would continue to work, but the PUTs would temporarily come to a halt (until more farming resources come online). And you would need to waste a lot of your bandwidth to fill up the entire network when it has grown big.
I won’t be the only one doing this to destroy your network as an attack, shouldn’t be too difficult then to halt or kill the network.
Those who have botnets wouldn’t bother since there is no profit to be made. And for individuals it takes 24 hours to upload a single 1 TB file with an upload speed of 100 Mbit/s.
In the unlikely case that PUT for public data be free (this week David said it won’t be cheaper, let alone free), I hereby commit myself to uploading 100 TB of random public data in the first 60 days of network going live.
If public data be somewhat cheaper, I’ll still upload tons of useless public data.