30 – How dPoW for other coins helps Komodo (it hasn’t to do with price)

jl777 explains his long term view of dPoW in this conversation:

meatspoon:
Do I remember correctly that dPoW costs 300 KMD per year for any blockchain that wants to use that notarization?

jl777:
Only for the past ones, prices going up

meatspoon:
Do you have a new price point in mind? With a total supply 110 mil, 300 KMD wouldn’t put much buy pressure on KMD even if literally every crypto project paid for DPoW.

ComputerGenie:
can’t imagine that even with 5000 assetchains that 1500000 would put any pressure on the market spread over a year’s time (4109.58904109589 per day)

jl777:
The benefit to KMD isn’t from the direct transactional purchases.
Think of what it would mean if hundred(s) of coins uses dPoW, there is a new business segment, blockchain to blockchain, with KMD becoming the leader of this new market

meatspoon:
So, ComputerGenie, you are imagining a world in which crypto assets number 2.5 times what they do today and all of them use dPoW? Quite the imagination you have.
I am trying to think of what it would mean (on price action) of hundreds using dPoW at a price of 300 (or even a thousand) KMD annually and it doesn’t seem like there would be much effect on price. Sure, the assetchains would be more secure, but it won’t have an effect on KMD price.

jl777:
Really?
How much does marketing cost?

ComputerGenie:
I was agreeing with what you said and pointing out an exponential increase example

PuffCoatJunkie:
I would imagine most chains using dPoW would buy close to 7k KMD and let the yearly reward pay for the future use of dPoW.

jl777:
Well 7 million KMD purchased by 1000 chains, would actually have a transactional effect
but the bigger effect from dPoW adoption by the industry is that KMD becomes an industry standard way for securing a chain. If the value of this in your mind is not a significant value, then it seems you not thinking long term enough.
Industry standards tend to survive very long term.
Now, look at PIRATE. The difference of PIRATE before and after dPoW. Without it, it was an interesting test coin, but once it got it, then it becomes a viable contender in the privacy coin space. If the PIRATE chain is not secure, then it can’t get a lot of interest.
A lot of people are expecting a giant shakeout in the crypto space, and it is indeed a possible scenario where a lot of projects just don’t survive in any meaningful way. How is an investor to be able to differentiate which ones? We assume they are not able to tell apart based on tech details since they don’t really do much research, that’s too hard to do. Now with the current level of “research” investors do, if they find out that many other coins are using KMD for dPoW security (whatever that is), it transforms KMD from one of many to one of the few that will be surviving whatever shakeout the altcoins will have.
THAT is worth far more than the 300 KMD per chain, but what do I know? I am just a simple C programmer

meatspoon:
Fair enough. So you see dPoW more as a way to offer unique value—not as something that will affect price. Or at least not in the short or medium term.

[…]

jl777:
Well requiring 100,000 to a few million KMD won’t be hurting its price but that is not the primary power of dPoW.
Crypto is very crowded. So crowded that even though KMD has solved many things, there are still startups that are raising millions to do what a single CC can do. An already existing CC.
By getting many dPoW coins, we not only secure them, some percentage of people will dig a bit deeper. This organic marketing is priceless

snowdamn:
Is the CC that will allow shorting ready? I lost track

jl777:
I had to slow down my development pace. Everybody’s head was spinning around, and waiting for testers to catch up

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