Hello everyone Please humour me by answering these quick questions below with top of your head estimates:
- How much SNT would you spend to rank a DApp you built highly? (Use your imagination if you’re “not technical”, the more numbers and bigger spread of answers, the better)
- How much SNT would a “rich” company spend to rank their DApp? In other words, how much SNT spent on ranking would make you go: “Woah, that’s a lot!”
Answer Now, Read This After
If you have good resources for how much companies currently spend on SEO, please let me have them.
Reason for asking the above: the curve is designed so there is only 1 variable to consider, the
ceiling is some % of the total SNT in circulation, and defines the Maximum SNT any one dapp can stake. So, if we have a 1% ceiling, and 3.4B SNT in circulation, then the max any dapp can stake is 34 million SNT.
The shape of the curve means it starts out costing just over 1% of what was staked to move a DApp down the rankings by 1% of its balance. This is great, it protects the little guys. However, it eventually gets to costing 0.5% to effect the ranking by 1% when half the ceiling has been staked (i.e. 17 million if we chose
ceiling=0.01), and goes to pretty much
0 cost once you get to within 99% of the ceiling. This means there is a strong disincentive to stake more than around half the ceiling.
I personally think that a
0.4% ceiling seems good, but there are many ways of slicing this game theoretic cat. We could, for instance, only consider only 1/10th of the total in circulation as our bound and choose 0.8%, which gives us a maximum of 2.7M and strong disincentives to not stake more than 1.35M, which seems a little more realistic. We may need to go even smaller, though guessing for “longevity’s” sake with volatile SNT prices is not a very fun game.