Sustainable Node Economics Require External Incentive Structure

I haven’t done the math to back this up but I have a strong intuition about node economics.

In particular, the network will need to be incentivized by a reward external to fees spent on private computations.

I suggest the tokens retained by the team be released evenly among nodes over a 20 year period according to a model of exponential decay.

If you do not do this, nodes will charge extremely high fees, or only perform computations where the fee is large.

You want a balance between making computation fees economical (because they are low enough) and node rewards economical (because they are high enough). The only solution to this is block rewards from a portion of the 75 M tokens retained by the team.

Please share your thoughts.

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