Thus the effect is for a new base for store cost (SNT) to be made. At that point we reach a new much lower steady state for Store cost (SNT) to buy resources and rewards for farming. this causes a cycling until people slow buying extra resources since they run out of things to upload.more farmers come on line and with the 2$ to 10$ base price increase a lot more farmers come online.(SNT reward amt increases and the 2$->10$) farming rewards in SNT and $$$ rise dramatically.network storage begins to become more scarce.This is an overall effect, some humans won’t but others store as much as their wallets allow.
When the price rises from 2$ to 10$ people find they can buy more resources per $ and then do so. Now if cost $$$ of SNT is 10$ the change is only in the base SNT that the network will be using.
And from there the 2 interrelated negative feedback loops bring back the pricing to the “base price” when major jumps in price OR storage occurs.įor example the “base” price of SNT is determined to be 2$ then if The base price will be determined somewhat by speculation together with what the market will bear. It can stretch but the further it is stretched the strong the pull to bring it back to reality (base price). You can think of it as a rubber band control.
While in some cases the trend will seem to be not followed, the negative feedback will bring it back into control. This is a negative feedback loop system using human nature. When farming rewards decrease (higher spare space) overall humans will remove some storage space When farming rewards increase (lower spare space), overall humans will add storage resources. humans with tokens already will also slow down purchasing resources.humans who buy tokens to upload will slow purchasing when price ($$$) is high.What I’m confused about is will the store cost/farming reward inform the fiat value of Safe Network Token or will the fiat cost of storage inform the store cost/farming rewards?
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