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Separating Transaction costs from Token Value #51

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CiaranNev opened this issue Feb 12, 2018 · 1 comment
Open

Separating Transaction costs from Token Value #51

CiaranNev opened this issue Feb 12, 2018 · 1 comment

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@CiaranNev
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These 2 paragraphs contradict each other?

One of the major benefits of the EOS.IO software is that the amount of bandwidth available to an application is entirely independent of any token price. If an application owner holds a relevant number of tokens on a blockchain adopting EOS.IO software, then the application can run indefinitely within a fixed state and bandwidth usage. In such case, developers and users are unaffected from any price volatility in the token market and therefore not reliant on a price feed. In other words, a blockchain that adopts the EOS.IO software enables block producers to naturally increase bandwidth, computation, and storage available per token independent of the token's value.

A blockchain using EOS.IO software also awards block producers tokens every time they produce a block. The value of the tokens will impact the amount of bandwidth, storage, and computation a producer can afford to purchase; this model naturally leverages rising token values to increase network performance.

@ChrisChiasson
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This is covered in one of the videos by Dan on YouTube. The (minimum guaranteed) bandwidth fraction granted by your bandwidth-staked fraction of the total number of tokens remains fixed. However, computers are purchased with Fiat currency. Thus, if the tokens appreciate in value, your absolute bandwidth grows even though your fraction of bandwidth is fixed.

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