about how “Everything will run on DAG”. Yes the tech promises to be amazing and peerless but let’s put that aside for a moment. What happens if you’re a startup and dag is now worth $10. Let’s say it’s a terrific new project that’s perfectly suited to run on Constellation, but they don’t have $7.5M for 3 nodes to reach consensus for themselves. Well there’s hybrid rewards for node operators you say. In that case, will L0 token rewards need to have a certain real world value (how does a new token have significant value?) to entice nodes to provide you bandwidth? Or will rewards be an arbitrary sum of tokens you’re speculating will have greater value in the future? If it’s the latter, won’t that be a risk most nodes would avoid, effectively paralyzing network project growth? I’m genuinely trying to understand and I apologize if this has been clarified or discussed in the past.
Node operators will be able to rent their nodes as well. The certain real world value is derived by each project/ state channel’s token economics and application of generative economics. Obviously, those who graduate the Flight Program and Accelerator Program are better able to take full advantage of the optimization hgtp provides. Every state channel sets its own rewards. Each state channel is competing, in a sense, with the rest in order to entice node operators to point their node at said state channel(s). ✌️
That’s the root of my question. What happens when a new project can’t compete for bandwidth because it’s token isn’t worth much relative to dag? Won’t that push projects to build on networks without such significant initial investments? Yes dag is the fastest, most secure, most scalable and it’s feeless (to users)… but there are other networks with speed, security and transactions costing fractions of a cent without the financial barrier . Is there something I’m missing? Or do we cater to big business with deep pockets and not the small startup businesses?
I see your points. Thinking you aren't quite there yet in comprehension of the economic mechanics but it does take more time to get a good grasp. HGTP may not be the best option for a stand-alone small biz...each company decides where $ resources are best spent. Getting node resources aren't limited to one pathway. A state channel isn't required to hold 2-3 nodes themselves. Maybe one statechannel serves many similar small businesses? I think this is possible... In fact am waiting to see this play out. But you are getting there!
I admit I have much to learn, that’s why I’m asking questions! One state channel serving multiple businesses certainly sounds like a worthwhile idea, didn’t think about that. I still don’t think I have a clear answer to my question though… besides the candid admission that “hgtp may not be the best option for a standalone small biz.” Maybe that’s the real answer and that’s fine. My dag bags are packed either way. By the way I want to thank each of you for your input.
Small businesses can also use Dor Traffic Miners and litenodes. There’s only going to be so many 250k $DAG nodes as you said.
It's not expected that a project would provide their own nodes. That would make it Centralized if they did. Creating an L0 token requires a backing of DAG, but there are methods in places to create funding, such as private sales and pre sales, both of which can happen prior to the TGE.
I think he meant just pointing their own DAG nodes at their own State Channel just like anyone else with a DAG node could. It's still just a node on the hypergraph so not centralized.
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