PUP-15: GOOD VIBES (Updated Version 1.1) - A New Economic Policy for Pocket Network

[steve (Steve Tingiris)]

Thanks for the follow-up @adam and for the suggestion that I read the post from Hal Press - I read it and it was very good. I also reread your thesis in PEP-35. However, I’m still not completly following your assumptions/logic.

@adam

We are optimizing for total network costs, not profitability of nodes.

I understand optimizing for total network costs to mean paying less in rewards while still building a scalable and secure network. This make sense because like Hal Press wrote:

It is not viable for a token to inflate supply exponentially over the long term as math dictates this would cause price to asymptotically approach zero, assuming market capitalization is capped at some limit (global M2 if nothing else).

I hope nobody is worried that we might be close to Pocket’s market cap potential at this point . And given the current supply, I’m not sure the rewards / inflation should be a concern - now anyhow. But that asside, if LeanPOKT reduces node running costs as signicantly as it seems it will, would that not also make it possible to reduce rewards (through WAGMI) while still allowing node runners to be profitable? And, if so, would that not also lower the total network costs?

@adam

Lowering costs one time through optimizations only kicks the can down the road rather than helping guide the ecosystem to sustainability.

I’m also curious about your comment here. Networks in general have gotten consistently more cost efficient over the years as a result of innovations and optimizations. Here is a good read on that if you’re interested. Why would we assume lowering costs through optimizations will only happen this one time with LeanPOKT?

I vibe with the motivation for GOOD VIBES for sure . But it introduces a lot of new variables that I belive could also introduce a lot of unforseen risks. In my opinion PEP-35: The v0 Optimization, LeanPocket seems to also address lowering the total network costs with a lot less complexity / risk. There is a good chance my old brain isn’t seeing things as clearly as yours. So, I’ll keep an open mind, but I’m not there yet. Anyhow, thanks again!