This just sounds like a really clever mechanism for solving the cold-start problem for the protocol. You generate a bit of initial demand to pull in some initial supply, which in turn generates its own demand, which pulls in more profit-chasing supply (of storage), which drives down the real price of storage, which is part of the value prop to the non-speculative demand, which is how the crypto asset might maintain its value long-term. Boom, now you’ve got a functional network, a valuable token, and a more efficient market for a raw material of the internet economy.The word bootstrap comes to mind.
No comments yet.