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17189733 No.17189733 [Reply] [Original]

I understand why the LINK network will have many users, and I understand that nodes will need to stake and be paid in LINK
But how exactly does this drive the price up?
No matter the price of a single LINK it will be converted to a USD cost per call most likely

Unless the idea is that anyone running a node will need large amounts of staked LINK in order to be a trustworthy node
Am i a brainlet, this doesn't seem like that big of a price pusher

>> No.17189755

Continual market buys. Over and over and over.

>> No.17189771

>>17189733
>Unless the idea is that anyone running a node will need large amounts of staked LINK in order to be a trustworthy node
This plus the fact that the staked LINK acts as collateral for the smart contracts it handles, means the market cap has to be roughly equivalent to the amount of value being handled.

>> No.17189787

>>17189733
>But how exactly does this drive the price up?
Scarcity

>> No.17189801
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17189801

>>17189733
LINKs will be locked in the nodes so the supply will get reduced. If having more LINK means getting more jobs and getting better jobs which require LINK as collateral, then more and more LINK will get locked in nodes which means less and less LINK will be available on exchanges which means higher LINK price. That's where the singularity meme came from. Once the demand starts ramping up, this shit will snowball so hard. It sounds so deluded, but yet it's logical.

>> No.17189819

>>17189733
Steaking

>> No.17189853

The more people that use the network, the higher the demand for link is. The supply is finite, so there’s only so much to go around. You can pretty much guarantee that if people are using the network and it’s growing, there will be more users buying than nodes selling. We can assume this because, many nodes will reinvest earnings for more staking/better reputation as well as some investors that will simply want to speculate.

>> No.17190111

>>17189771
>>17189801
>>17189853

Here we see hopium addiction leading to brain death. Staking and collateral are incredibly hard to implement and zero progress has been made, just literally whotnerships. Anyone with a brain is selling this pump and rebuying at 1-2$

>> No.17190143

>>17190111
Lol checked. Maybe you’re right, but I wouldn’t swing till we break ath if I were you.

>> No.17190174

>>17190143
We’ve already broke ATH

>measuring in USD
ngmi

>> No.17190227
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17190227

>>17190111
Also, even without steaking, the price will rise. Node operators need to get paid, like I said before, there is a finite amount of tokens, if the network grows demand will rise while supply stays the same.

>>17190174
>still spouting retarded shit from 2017.
>not realizing that most link volume is usd or a usd stablecoin.

Lastly, I love you. And only wish you the best. Cheers

-Steve (sent via tapatalk on my iPhone 7+s

>> No.17190234

>>17190111
not to mention all the bugs on release. imagine the poor sucker who got all his links wiped as a collateral for a mistake or a bug. staking a stack for at most a 10% return with a chance of wiping is stupid. rather go play leverage trading for better returns.

>> No.17190236

>>17190111
this lmfao

I'm all in on link but literal brainlet tier takes is all you get on the tokenomics. People talking about collateral being 'locked' in nodes, despite operators being able to dump any time. People lying about 'the value of the collateral MUST be equal to the value of the underlying contract' etc.

Smart linkies still exist but they don't post here. I think the most likely case is that once the network really rolls out node returns will work kind of like BTC mining inflation does. IT remains to be seen whether or not people will be willing to pay for this, as sergey say 'we don't really know how much people will pay for decentralization'. What you get is a lot of wishful thinking by people who somewhat understand this stuff conceptually but have never interacted with SCs and will believe anything that's parroted here because it makes them feel good.

We don't know how it will play out but it'll probably moon from retards FOMOing into the speculative frenzy. In the long run no one really knows if the network can even work without being subsidized from the dev stack. Chart looks great tho.

>> No.17190310
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17190310

>>17190236
Can I see a smart contract you’ve written?

>> No.17190327
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17190327

>>17190236
this is the harsh truth i needed to hear. thank you anon

>> No.17190328

>>17189733
If you're executing a smart contract worth $2 billion dollars you need to use $2 billion worth of LINKIES as collateral.

>> No.17190335

>>17190310
Forgot to quote you >people who somewhat understand this stuff conceptually but have never interacted with SCs

>> No.17190472

>>17190227

Node operators are getting paid by the link team burning cash. Totally unsustainable. Until actual users pay for the information on-chain all the tokenomics are pure speculation. And you should be scared of that day, not excited, because it will reveal how little use the network has and how little people are willing to pay for trivial things like the price of Eth.

>> No.17190543

>>17190472
I’ve met with Thomas numerous times at chainlink meetups here in Dallas. They’re not fucking around, and while the dude is very candid about stuff, you can tell they’re playing stuff close to the chest. Meta oracles means any kind of data (not just eth prices) can be aggregated on chain. I’ll wait a while and see how that plays out.

But, anyway, I understand your apprehension and can see you’re sincere. So no ill will your way from me. I’m sitting on a lot of this token from a very cheap purchase price. I can afford to have a bit of faith.

>> No.17190652

>>17190335
Right, like all nulinkers, you're literally too fucking stupid to differentiate between 'have never interacted with a smartcontract' and 'I have written several smartcontracts myself'

>>17190327
anon back in the day we had a lot of maxed out threads discussing this stuff by people who really got it backwards and forwards. that is how the cult got started. nowadays most people are fucking brainlets that fomo'd into link from chink scams or xrp or whatever (that they also claimed to be 'never selling'.

Most of the posts you get these days are like >>17190328 despite T. Hodges directly debunking this shit on plebbit. These people do not have a clue about how LINK works but will believe any hype about it just because they want it to be real. Synthetix does 10's of millions per day without any collateral staked.... they'll say 'but it's just a defi project enterprise clients will be different' but the idea that node operators will compensate USERSC for bad data shows a complete lack of understanding of how LINK works. If your average 2020 LINK holder has read the whitepaper, he sure as fuck didn't understand most of it. Again, all that being said, it's still the best hold in crypto and will moon on hype when staking goes live. Even the smartest motherfucker here can't envision where this network will be 5-10 years from nowm and it'll take that amount of time to fully play out. All these faggots with 5k stacks are just buying the garbage that 500k plus wallets tell them so that they can retire in the short term.

>> No.17190668

>>17190111
>whotnerships
checked and kek'd

>> No.17190821
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17190821

>>17190472
I feel as though the price of these feeds could be aggregated by multiple interested parties.

>>17190236
There is almost inherently a price fixing cartel aspect to the arrangement as it stands without staking. As long as node operators are paid in link all parties who use or are paid in Link have an incentive in the token to rise in value. If the price of your contract is denominated in Link since you commited early you have a large number of Link whose potential ROI increases if LINK is worth more (You can utilize this cost saving network for longer with your initial investment if that amount of Link you are paying is continually decreasing). Node operators who are being paid in Link don't neccessarily have to sell these assets right away and will only do so when they think its a good time. Combined with a lot of network use you may run into liquidity issues pushing the price up. But I think staking will provide fuel to this FOMO fire. How this will act with synthetic assets created off Link i'm not sure.

>> No.17190856

>>17190328
Is this true?
Holy fuck I think I finally just got it

>> No.17190871

Hey look guys it's this thread again

>> No.17190902

The tokenomics of the LINK token.

1. Chainlink nodes will be paid in LINK tokens only. There will be conversion tools for people that want to use fiat but will be converted to LINK. at the end of the day only LINK tokens can power the network since the nature of ERC-677 token, built specifically for LINK, is to transfer data.

2. LINK tokens are used as collateral value. Smartcontracts will use Chainlink nodes that carry a % value of LINK to the value of the Smartcontract. So yes, you can start a node without LINK but no one will use it. High value smartcontracts or any contract that has value will use nodes that carry the same or a % of value of LINK.

3. Decentralized networks that are home to smartcontracts will need decentralized data to execute. Chainlink is currently the only option. Thats why you will see everyone in this space partner with Chainlink

So....

Smart contract creators will demand a certain level of reputation or amount of collateral, to be paid in LINK tokens, that suits the value of their smart contract. A $1million bond would require a lot more collateral, than, say a smart contract dealing with $100. You wouldn't select the low rep/low collateral available nodes for something like a huge bond. Chainlink is actually targeting these high value contracts. Sergey has discussed at length why high value contracts in the financial world require a decentralized oracle: it puts all the risk onto the oracle rather than the smart contract creator. The smart contract creator doesn't risk losing money - the node operators do. The Chainlink network is genius like that.

There is infinite amount of collateral available because the token price can rise to meet it.

Now you have to research how large ALL these markets are. derivatives, insurance etc... hint: Trillions.

Is 1000$ really possibly in say the next 3-4-5 years?

>> No.17190980

>>17190652
t. retarded

what kind of fud is this, he says chainlink is a good project but that it does not do what the whitepaper says it does? some kind of retarded 3d chess i guess

>> No.17190989

>>17190652
I bought link on Ed... you pleb. 10 link says I have a bigger stack than you.

Anyway, no reason to get so angry. I’m at work and skimming on my phone. It was just a question. Don’t know why your so salty about this. Has holding for so long turned you into some kind of Stockholm syndromed masochist that just likes being in a constant state of anger and fear? Do you actively want your investment to fail?