Could the “SafeNetCoin” have 1 euro or 1 dollar price?
then it could vary in puts only
so e.g. if a put costs 0.0001 then 1 safenetcoin would cost 1 euro/dollar and buy you 10000 puts?
would it be good for ease of use?
Yes, that is how it was designed to work. The network adjusts the put/SNT price based on a capacity measure. Eg. SAFE/SNT rises to $600 → a flood of capacity is added and the put/SAFE ratio keeps falling.
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i argue of keeping the “SafeNetCoin” always equal to euro and changing the PUTS you get for that.
so in my head there is no “SafeNetCoin” with 2 euro or 600 euro in your example
Apart from turning the token into a financial instrument being presented by the company there is the issue that there is no way to know how many PUTs a euro will buy.
What if you buy today and go to do Puts tomorrow. You bought when it was 8000 Puts, but today its 5000 Puts or even 7000 Puts. Its unreliable and we are back to the same problem it was to fix.
If you say the coin is coloured with a set number of Puts at time of purchase, then its gamed, people selling 5000 puts but claiming its 12000 Puts and too late after they trade.
You would be better off having some system were people can estimate how much safe token is needed to get X Puts and then they buy those tokens
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so you say that 1 SNT should have a stable amount of PUTs? how can this be?
how will the network be agile? isnt the payment SNT for x PUTs? it is SNT in euro price agnostic!
I have always struggled with understanding how the 2 variables would work together. If i spend EUR 1.00 to buy 1 SNT with 2 PUTs per SNT, or if i spend EUR 1.00 to buy 2 SNT with 1 PUT per SNT, the result is the same but the SNT price has halved,
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If you set SN to fixed peg example Euro then you lock the market to never be able to exceed 45 billion Euro at any given time for all of the Safe-networks future, because the supply is limited.
If you wan’t to lock something to example Euro then you need to have a variable supply to allow for growing economy, beeing able to print money like banks or Tether.
Either you have variable price like example Bitcoin or you have variable supply like banks/Tether.
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Those are just random words to me, that sounds cool but could mean anything, you need to explain how the system works. Initial thought is that it scares me because it makes them sound like they are some “magic stable coin solution” and almost nothing in economics is magical and unknown. Smart men that knows logic and maths have figured out how most of economics works and little new seems to be discovered after the 70’s.
But also, I think what you are talking about is a different question that should have it’s own topic.
No it should not. If it did then the network would not have a way to reward according to its need.
The fiat price of a token is set by what people are willing to pay. The network cares less about this. Remember the token is for the network to operate, not for money making and when you forget this principle then it becomes confusing.
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To clarify, the network doesn’t care at all about this, and has no native way of knowing the SNT/fiat price. The feedback loops are completely disconnected. The network sees limited capacity, increase SNT price of puts. On the outside, farmers see ‘puts are more expensive than my costs, add capacity’. The network then sees ‘excess capacity, make puts cheaper’
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I say it as the humans are the connection.
As you say, higher price and humans want to become farmers, lower price and humans start leaving farming. And more farmers reduces rewards per GET and visa versa.
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