What's the intrinsic value of LINK? It's obviously valuable because it pays node operators but if they want prices to remain relatively stable then the fees for requests have to change when LINK becomes cheaper or more expensive. So if LINK skyrockets they'd have to decrease the amount of LINK needed for fees and the demand and price would drop accordingly. How do you guys figure what the equilibrium price is gonna be?
I think this is an open question for all utility cryptos that aren't "sexy" and used by the general public like ETH for example. ETH is only as high as it is because every common joe using the network needs to have some and because people think Ethereum is hip and cool. As far as I understand only bigger players need to hold LINK to pay for fees so it's unlikely to rise as much above its fundamental price as ETH did.
He answers a question about how the token will be used.... If you can't put 2 and 2 together.... well.... your loss.
Joseph Parker
The fees will be the same whether link will be $10 or $100, the only difference will be that instead of paying 0.001 link you will pay 0.0001, brainlet
Austin Kelly
What part about free market of demand and supply don't you understand, tard?
Lincoln Moore
I mostly watched it already yesterday. He says it's gonna pay for fees, right? But how do we know that's gonna make the LINK prices go up if the fiat price for requests is supposed to stay stable?
That's what I was asking about. If you need to pay less the demand goes down so the token will eventually reach some sort of equilibrium price.
You tell me, because the way I see it I already explained it
Bentley Perry
There are no words to desribe how retarded you are.
Demand doesn't magically dry up as price goes up. Demand is demand, and a $10 fee is a $10 fee, regardless of how many link that is.
Listen, I get your logic but it's totally pajeet.
David Gutierrez
>equilibrium in crypto
Ryder Barnes
It's nice that you're responding constructively. But that's not what I'm saying. I'm saying that if the fee is always supposed to be fixed, LINK can only go up so much in price because if the demand increases, the supply will dry up and the price will skyrocket. So they need to reduce the amount of link needed for fees. And that in turn drops LINK price. So what is that final price gonna be? I have no idea
Yeah right, currently we don't have much because it's all speculation. But a good economic recession will put an end to that
Landon Price
Say, node operators receive payments in LINK so if LINK supply is short the prices go up. But then fees are lowered. Now the supply suddenly is much bigger than the demand and prices start to drop. So if they want to maintain stable prices the LINK token price will most likely fluctuate around some arbitrary fiat value. But that might be a million dollars or less than it is now. How the fuck can you tell?
Dominic Ross
You're forgetting that only 35% of total tokens are in circulation. The other tokens will be used to keep the price and supply stable and also make the developers rich.
Charles Parker
Yes Sergey's eating habit doesn't help the price situation. And those out-of-circulation tokens could possibly satisfy all the industrial use necessary.
Sergey hasn't been talking much about the token prices and something like this might be why. I don't think anybody can tell where it's gonna go.
Chase Lopez
Now that I think about it, if you have tons of LINK and then dump all it, you'll drive down the market price. Now the amount of LINK required for requests would have to increase and users would have to buy much more, driving the price up while you dump. And when you finish dumping there would be no LINK left to be sold and the amount required for fees would collapse and the price would collapse. So basically if you hold large amounts of LINK you're guaranteed to be able to dump it high? Sounds... interesting.
Isaac Harris
Dude, sit back, take a nap, then reread how ERC20 tokens work. You're stuck on an incorrect mindset and you gotta clear it.
These tokens go to *twenty* decimal places. If any token wants to charge $10 dollars fee, and the price per token is $10, the fee is one token. If the fee is $10, and PPT is $100, the fee is 0.1 token. If PPT is $1000, the fee is 0.01 token. If PPT is $0.10, the fee is 100 tokens.
Get it now? Demand for a token, driving price up or down, doesn't require somebody to change fees.
Connor Moore
Fuck sorry bro, meant to respond to him:
Jeremiah Davis
So what's 1 -> 0.1 -> 0.01 if not changing fees?
Ethan Bennett
>18 decimals If the fee was 1$ and that would be the minimum you can trade in LINK (0.000000000000000001 LINK) then we have a problem with fees skyrocketing. Now, you tell me, how much 1 LINK would be worth by then.
Jaxon Baker
Did you read this?
Samuel King
That's changing fees in LINK, not their $-equivalent
Aiden Murphy
Exactly, so won't that stabilize LINK at some fiat price?
Nathan Hall
Got you know. To many variables to give a definitve answer yet. Also the demand should be rising after time, because, if it works, the number of smartcontracts run over CL should not decrease
Brandon Ortiz
that doesn't answer OP's question though
Ryan Evans
Also, cryptos will always have a speculative note to them. Even stocks don't represent a companys value, but the amount of money all shareholders are willing to bet, that this company will be worth more in the future
Andrew Morgan
I think this might be the best case scenario, kek But yeah the price situation seems pretty chaotic. There's a good chance of it going up though, at worst it can go to 0 and you lose your money, at best there's no theoretical maximum. So either this is a genius investment or a really shitty one.
Ian Kelly
it is always tied to fiat value at the time of contract creation retard. it won't make contracts more or less expensive, the amt of link will just change.
Elijah Bell
>calls me a retard before bothering to understand the question or reading the thread please
Luis Torres
How does the stable $ pricing even work? Has Sergey ever discussed this?
Chase Rivera
Nope, but it should be to hard. Afaik the NodeOperator sets the price for the API-Call and it should be easy to just get the cmc-price (for instance) ATM of the API-Request and demand the required fee in LINK
Jordan Green
*shouldn't
Jordan Evans
Should try reading through the freshly-released code to see how it works.
