So, now I have really thought about what you write in the white paper, and made some math you can think about.
Lets assume that ETH value is 400 dollars. And the Gas about 50 000. The lowest gwei you can use, is like 0,5 now. That would mean that the cost is 0.000025 ETH, or 0,01 dollars, to get about 0,00032 ARTE. So to get the value for 1 ARTE, 1/0,00032 *0,01= 31,25 dollars per coin.
So, there will surely be bots to call that function, and mine the coin.
So, lets assume that you pay 100 MNE, or 10 ETH, and get 10000 ARTE, during the first year you would get 0,432*365=157,68.
That would give the dollar value, 157,68*31,25=4927,5 dollar.
Assuming you bought the first day of the ICO, and payed in in ETH, you payed 4000 dollars.
The total amount of coins that can me made with public mining is 512000. This is calculated by the total amount of times the function can be called multiplied by the average number of coins made by the function. I here divide by 2, since the average value will be half of the original number. 3200000000*0,00032/2
So, That predicted value is off based on a couple of wrong assumptions:
1: That people would mine, and then sell at the same value. That would off course be a bit stupid, so the predicted value would ofc be higher.
2: That the price would not drop under the public mining cost, it could of course do that, and make that function useless.
3: That the cost for mining 1 ARTE will me constant. It will not since you get a bit less for every time you call the function.
So my prediction is that the Value of the coin will be higher then 31,25 dollars, and it will be a fight among people to mine it until it will eventually stop, when the amount of coins*the value of the coin is less then the current cost to mine it. And every time the price get higher, the mining process will start again.
Please let me know you thoughts about my calculations, have I made this correct? What are your thoughts about it?
Hi,
Thank you for your analysis.
Internally we are actually still having discussions on how the Public Mining reward should be definitely done.
In our current draft we are proposing 0.00032 ARTE per call, however, we are considering lowering this to 0.000032 (or even lower).
We would like to ask the community for the opinion on this. This process will only be defined once and the function won't be able to be changed once it is deploy on the network so we are glad to hear as many opinions as possible.
We have to take into account the following:
1. The gas used per call is approximately between 25000 and 55000
2. Users will be able to call the function as many times as they want
3. Multiple calls can be done simultaneously by different addresses
We are looking forward to hear the community feedback on this
maybe 6 years more better.