Suppose the Safe Network becomes wildly popular with a large volume (number and size) of puts on the network. This will cause the cost of puts to rise, right? How closely do you expect the movement of Safecoin on the open market to mimic the trajectory of the costs of puts on the network? Do you expect robust activity on the network will cause robust (upward) movement in the eventual markets? If so, how quickly do you think the market will react to a change in put costs?
Early in the lifecycle of the network, a lot of PUTs would likely result in a short term price rise correlating with an increase in farm rewards to attract more farmers. Once more farmers (space) becomes available, the price falls back down, and then farming rewards gradually decrease to achieve a proper balance once again.
In the long term, the coin will likely be decoupled almost entirely from PUTs as far as price fluctuation due to PUT demands. This assumes the SAFE Network achieves its goal of being a “new Internet” of sorts, and Safecoin becomes a ubiquitous currency for exchange. This is what people here are hoping will happen, which will drive the coin price “to the moon” as they say.
Its probably more a case of that farmers (majority) will not farm unless they see value.
This would translate into the markets at least valuing safecoin to (actual costs + reasonable return) for the farmers.
Reason
- if the safecoin value is too low then some to many farmers will stop
- this causes the reward rate of issuing safecoin to increase for the remaining farmers.
- then farmers will return when they feel they get value from farming
- long term this is likely to balance out
- if the safecoin value is about right then steady as you go for the farmers
- if the safecoin value is higher - then farmers will join as they please knowing they are getting value for their efforts
- this safecoin value may be higher because of the other benefits that safecoin bring then simple rewarding of farmers. Once the other benefits are high enough then they will drive the price higher than the actions of farmers joining/leaving.
This is due to the effect of farming rate
We have a number of topics where this coin value is discussed within the topic. Have a look back through this category #safecoin and I am sure you will see some.
NOTE: here value is not price. Its more the reward rate * price. if a farmer gets 10 coins per month and the price is 2$ then the value is 20$/month
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Not “as they please”, but as they please and as the network welcomes them?
If the $ price for safecoin will be high compared to resources needed for farming, there may be much more farmers willing to join than what the network is needing at the moment.
Then one might not leave the network so lightly knowing that getting back may not be so easy.
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Yes early on this would be a major issue. But as the network gets very large and assuming the price has been high then the growth will not be instant but over a long period of time as more and more hear of it. As the network gets even larger the chance of random people being accepted would be much better.
But yes join according to the network needs.
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To run a vault it is worth only after several months. First you have to become elder while your ready device is not making any profit. It is simillar with Storj or Sia, were it is better to run vault for 24/7 365days. So if reward will drop you have to decide if keep it with low reward or switch to different network and have probably even smaller profit for next month.
With plenty people running vault in more than one network, the reward across all networks should be similar.
Really? I thought you will earn something immediately, but more as an elder.
The only reason to be an elder is to be a part of consensus
Only infants will not earn.
Children currently will earn
Adults will earn
So you may earn relatively quickly
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Thank you neo to be more specific.
As the reward system is also based on time, the price have to be quite different to let you turn off vault after 24/7 for year or more.
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i thought/think that node age is/should also be part of the earn rate, as it would render age (the reputation system) meaningless. if there is no difference for me in behaving bad or good than there is no intensive to behave good.
edit: hmm, sorry, you haven’t said anythink about/weren’t referring to the earn rate in your post.
First you have to become elder while your ready device is not making any profit.
If the vault acts bad then you have nothing. The vault MUST act good at all times. What causes age to drop is things like 50% drop when reconnecting, but the vault still has to act good. Earning ability is only dependent on being a child node. Once ageing is implemented the age a vault starts earning may change after testing but its silly to make people wait months till their vaults become an elder or adult to earn even though the vault has proven itself.
Ageing is basically designed to grow upwards
Its unsure how communications may affect things, could be just a unreliability count and then vault dropped if too many too quickly. Not age related.
How subject to outside manipulation through speculation would SAFE be when attacked by states and banks and cartel speculators as in “I care not who the ruler is, give me control of a countries/network’s currency and I control the country/network.”? Would a fork stripped of the currency piece like a very secure P2P still have a place? And would this or these forks serve to protect the actual SAFE and it currency- because if censorship or power were the ultimate aim in attacking SAFE with currency that would not stop the power of its currency free offshoots? Moreover this info dissemination capacity is a core feature of all SAFE, it is on inhearant so you may not need offshoots once any scale is achieved.
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Hmm, yeah if we can tell them apart.
Also: the earnings are based on delivered GETs, so a new node would earn less in any case. Otherwise a bad node could be just spun up again without any punishment.
Yes you have to have the chunks in order to deliver them.
I think so yes.I think it will be tied together pretty tightly and ultimately be pretty immediate. People will likely build network cost viewers and the like.
This is a good read 10 key facts about SAFE Network farming