Hi all, I’m a frequent lurker of these forums. I’ve been able to get all of the info I wanted just from reading posts and replies up until now.
I’ve been following Maidsafe since before the crowdsale and wrote a couple of blog posts on deadloch.com, I’ve got the basics down fairly well. What I can’t seem to get my head around is the flow of Safecoin and how this relates to general users and farmers.
I’ve seen some discussion regarding how much free storage space to give to new users. I am in agreement with those who argue that new accounts should be given just enough space for basic functionality. If users want to store more data, they pay for it. This raises a couple of questions:
- Is the storage of data the only thing people need to pay for? What if a user just wants to access a publicly shared file? Is passive use of the network (no data storage) free?
- How is a price for storage established by the Safe Network? If a user wants to store data how does the network decide the rate they will pay per GB? I have seen some discussion on this as well, and it appears that the network knows how much storage is being supplied by farmers, and how much of this is used/unused. Using this information, network algorithms can adjust the price of storage to bring supply and demand into balance. Sounds nice, but how will this actually work? For example, what would constitute an oversupply of storage? 10 x more available storage than used storage? How aggressively would the price of storage be changed to reflect more/less storage available on the network?
Farmers earn Safecoin by responding to GET requests on chunks that they are storing. Their income stream will be predominantly made up of newly minted Safecoins, but will also include a small amount of recycled Safecoins due to the expenditure of users discussed above. More questions:
- How are new Safecoins minted? And by that I mean, how does the network decide how much safecoin to award to a vault that responds to a GET request? I’ve seen graphs depicting the intended distribution of Safecoin over time and it appears to follow a model similar to bitcoin, ie high volume of new minted coins intially that tapers off slowly over time. Does this mean that there will be a decided upon number of Safecoins minted per day? Per hour? Per minute? Will safecoin minting be completely independent of the number of GET requests in a period of time?
- Where do Safecoin payments for storage go? In what manner are these payments earned by farmers?
Apologies for all the questions, but I have done my best to find solid answers to these points with no success. Hopefully someone can shed some light. I need to have some confidence that the network’s economics will be designed in a way that allows the network to flourish. This is very important given the assumptions I have made:
- The tech will work
- The tech will be more efficient than existing alternatives for at least a few use cases
If the economics aren’t right first pop (and even if they are!) we’ll see the code copied and new economic incentives tried out. An implementation will gain popularity eventually, great for humanity and the future of decentralized internet, not so great for Safecoin investors like myself!