Some folks have contacted me about the status of dynamic plasma. I re-read this post and TBH it’s really hard to follow at this point. I just wanted to point of that if anyone has feedback or suggestions on the design I think now is the time to provide that feedback.
I’m going to share a private chat with a now deleted alt in TG with the following feedback.
I’m not entirely sure how this works. In the example above:
If 100 QSR ($0.10 ea) represents 0.0001% of the network throughput today and costs $10 to acquire, does dynamic fusing say if the price goes to $1.00 each we only need 10 QSR to acquire 0.0001% of the network throughput?
Also, I assume the share of the network goes down over time based on inflation.
For example, if the price of qsr remains constant 100 qsr will represent less and less network throughput over time due to inflation.
The more urgent node performance updates have been blocking me from working on dynamic plasma, but now that they are more or less finished, I’ve been working on a second version of dynamic plasma, which aims to simplify the design. I am planning on presenting the second version in a new thread in order to recap the current status and make it easier for others to follow.
I guess I’m more interested when demand for block space exceeds supply of block space.
When this happens the demand for QSR goes up. As demand goes up price goes up. As price goes up the cost to buy qsr and process TXs goes up (assuming no PoW or dynamic fusing). The message from the deleted TG account seems to imply that as price goes up, the amount of QSR needed to process a TX should go down.
In my mind these two forces seem to negate each other. I think he (the screen shot above) is implying the following:
Assume blocks are saturated and there is no qsr inflation (to make the example EZ). Demand for QSR goes up to process TXs, price of QSR goes up because demand is up, amount of QSR (plasma) needed to process a tx goes down (dynamic fusing) to keep the “cost” of a TX stable. Now that it takes less QSR to process a TX demand goes down and therefore the price of QSR goes down. This up and down price movement should cause the price of QSR to be stable over time and the only thing that causes the price to go up is a reduction in supply (launch pillars of sentinels).
Now remove the assumption that there is no inflation. The long term price of QSR becomes a balancing act between inflation vs launching nodes.
This is a super over simplification but generally this is what I think deleted account was proposing.
I guess the market cap of QSR becomes the overall cost to access 100% of the total computing power of the network less the governance value associated with ZNN to control the network plus a speculation factor.
Am I looking at this correctly? Maybe I’m totally wrong.
