If more storage resource is required, it means someone has been paying the network Safecoin to put data onto the network. The network can use this Safecoin to incentivise farmers to provide more space by increasing farming rewards, and at the same time start increasing the price of putting data on the network as space becomes more scarce.
Assuming some people start farming out of curiosity, there should be sufficient storage in the very early days to kick-start a market.
Farming wouldn’t need to rarely create a coin; if it is receiving Safecoin from those who want to store, it can distribute Safecoin to those who are offering resources.
Reasons for Safecoin increasing in value from there could be anything that increased demand for Safecoin, including growing use of the Safe network, or Safecoin as a crypto currency. If demand goes up with a fixed supply, the price will also go up.
Not having an increasing supply will in no way prevent the rise in value of Safecoin - with a given level of demand for Safe network services, the value of each coin will be higher the smaller the supply.
Investors will factor in future anticipated dilution when calculating a present value for an asset like Safecoin to make decisions on whether to invest or not as a matter of course. Investors making such decisions will have a very significant impact on price.
Saying this isn’t the case is like saying investors in shares don’t take into account anticipated future dilution, or that investors in fiat currencies don’t take into account inflation.
Even with all coins issued at the start, people would still need to pay for network resources with Safecoin, and would need to farm in order to receive Safecoin, which people would want to do, as Safecoin would be valuable for use in paying for network resources and as a crypto currency. So all required incentives would be in place for a functioning market.
Yes, I think markets will have factored in the anticipated dilution to some degree. The price would very likely be significantly higher if there were no anticipated dilution because big investors would divide their future projected network value over a smaller number of future coins, that when discounted to today would result in a larger present value. This means they would likely buy at higher prices, and only sell at higher prices.
I’d be very interested if you could point to any actively traded coin unexpectedly increasing or decreasing its ‘hard cap’ significantly without impacting the coin’s price.