I was wondering what will happen to the 90% of Safe Coins once the network launches ?
How will they be distributed ?
When a users "farms" a Safecoin it's created and assigned to his address. This means the coin is created by the network because someone delivered a chunk out of his vault.
When a user uploads data (PUT) he gives up ownership of some Safecoin and the coin is free to be farmed again by someone else. So there is recycling of coins.
This is what happens:
Client > wants to PUT data to the network > close nodes say: burn x-amount of Safecoin first > client burns Safecoin > nodes sign data to be uploaded to he network.
Vault > get's a request for a chunk from network > delivers chunk (always has to) > says to close nodes: I delivered chunk > close nodes pick random Safecoin address and if it's free (not owned)
the Vault becomes the owner of the address.
So when 25% of all coins are farmed, from all new farming attempts 25% will fail as the nodes pick a random address out of the 4,3 billion Safecoin addresses.
There are other things happening as well. When a lot of people run Vaults (good Safecoin prices) the reward per delivered chunk goes down. When not enough people run Vaults the reward (FR) goes up goes up.
So the network balances itself out depending on how much supple/demand there is for storage. My guess is that the FR will be very low as a lot of people run Vaults in the hope to farm Safecoin.
This will all be tested with test-Safecoin first. At that time the devs can test several ways in doing this.
