The Economics of safecoin

Sorry man trying like hell to get code done :wink: not easy.

There will never be a tie between network resource and safecoin at some pegged value over time (this is a little lie). The network will calculate all costs in as real time as possible. So i.e. like up to 2* NetworkAverage (or a proportion as @dyamanaka has outlined (great btw)). So safecoin will buy resources for sure, but not at any fixed price, it will alter through time.

This was part of the white paper, there are 3 main things in resources to consider.

1: Price of safecoin will increase (we all hope)
2: Price of a resource unit decreases (exponentially)
3: Quantity of resource increases (again exponentially)

So safecoin has to take these into consideration. The amount of resource will increase per person at a cheaper rate per unit of resource over time. So the network will calculate this based on a supply / demand of farmers. So if safecoin farming slows, farmers leave, if it increases farmers join. This should balance supply and demand, but I hope eventually that farmer nodes will be tiny and many devices can farm.

If you imagine this also from the perspective of resource requirements then the link between safecoin costs and resource requirements provide the same supply/demand balance.

Initially the costs will be hard coded (the wee lie), this will be algorithmically calculated as soon as possible though. Not to difficult, but too much for me at the moment :smiley: It’s way simpler though when we get some network population results and resource requirements in place.

Then add in big data analysis and computation, these resources should also increase safecoin usage on the net.

So see safecoin as a currency perfect from buying anonymous reources on a private network, just like cash. I think this is the easy way to look at it.

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