I'm worried about this...
This is one aspect I never liked about DPoS... the idea of voting people into positions of power for the security of the network seems problematic, no? I don't see what the incentive (monetary) will be in protecting the network! Down the line, anytime there are issues where network participation drops, we would have a security issue where the incentive to secure the network would not align with the costs to do so.
How is this mitigated? If there is no financial incentive to secure the network, it will then be financially beneficial to ATTACK it, no?
btw. is there an seperate Paper where I can find how much I can earn with an running Node?
... 10.000 XCR a lot of coins,so I want to know how long I have to run a node till I have my 10.000XRC back.
(For future reference, I have also posted the summary below at the main Crypti board as "Crypti DPoS Delegate Economics":
http://forum.crypti.me/viewtopic.php?f=4&t=17)
Earning Crypti in your pocket takes A LOT of Crypti leaving other pockets.If you want to think in terms of Crypti instead of dollars:
How many Crypti you get in a month by being a Delegate is totally dependent on the monthly traffic in Crypti handled by the system.
For you to make 1 Crypti as a Delegate, the entire DPoS system has to process total transfers between users of 112.2K Crypti at 0.1% fee. For you to make 10K Crypti as a Delegate SOLELY FROM USER TO USER TRANSACTION FEES, the entire DPoS system has to process total transfers between users of 1.122 BILLION Crypti - every single Crypti in existence has to change hands 11 times at 0.1% fee. These numbers are constant regardless of the market value of Crypti.
The 10K Crypti that are surrendered in fees by a user that wants to become a Delegate is a special case. These Crypti are split directly between the other Delegates and the Foundation, with each EXISTING Delegate receiving 90 Crypti upon the application of a NEW Delegate. So
if you are an early Delegate, you will get your initial 10K entry fee back once 112 other users apply to become a Delegate. However, I personally wouldn't recommend depending on this special circumstance as a payback method to recoup your Delegate fee. It obviously isn't going to work for all Delegate applicants.
Running a real-world node takes real-world money.If you want to think in terms of dollars and pay your server costs:
Say you are a Delegate running a node and you need to make $10 per month forging to pay for your node costs. Crypti is currently $0.004 each. Let's say that when 0.2.0 launches the value of Crypti pops 2.5X to a penny each or $0.01 each. As a node, to get your $10 you have to "clear" as your monthly fee cut $10/$0.01 = 1000 Crypti. That's your take AFTER you pay a 10% "tax" to the Foundation. In order for you to put 1000 XCR in your pocket every month you've got to take in as fees a total of 1111 Crypti, with 111 going to the Foundation and 1000 going to you. This is true for all 101 delegates, so the total fees required to let ALL forgers break even at $10 per month is 1111 X 101 = 112,211 Crypti.
Thus for a "breakeven month" with a $0.01 Crypti value 2.5X higher than at present, 101,000 Crypti must be split by the 101 Delegates (who get $10 each) and the Foundation gets 11,211 Crypti worth $112.
Initial forging fees are apparently going to be a tenth percent or 0.1%. This means that for every 1000 Crypti processed as node traffic, the nodes pass 999 on to the recipient and keep 1 as a fee. So for the 101 nodes to take in 112,211 Crypti as fees, they've got to process 112,211 / 0.001 = 112.2M as Crypti traffic.
So for a Delegate to make "just" $10 as 1000 Crypti in a month, the Crypti price has got to be 2.5X higher than it is now coupled with more than the entire total supply of Crypti changing hands every month. Note there are other combinations of these two value / traffic criteria that yield $10 per month per Delegate, but making one of them "somewhat more reasonable" makes the other one "even more
unreasonable". Thus
another scenario is, if the monthly transaction traffic target is dropped to "only" 10M Crypti per month (a tenth of the total Crypti supply), then compensating a Delegate $10 per month requires a Crypti value of $0.112 each, or over X25 the current value.These are kinda sobering numbers in my opinion. A delegate had better be prepared to fund a node out of his own pocket for probably many months until either Crypti prices and/or transaction volumes ramp up VERY significantly.
