Considering the current market cap of $800M, the proposed increase in the standby nodes count from 242 to 400 would potentially elevate the inflationary pressures on the XDC Network's market cap by $7.332M annually. Or, assuming current market cap, the annual inflation rate—for standby nodes alone, I’m not counting core node minting—would increase from 1.4% to 2.32%. That’s a 65% increase overall. (See below for the relevant calculations.)
Apart from the inflation, one might be bit concerned about one single entity having so many nodes—assuming they will quickly buy out all the additional nodes they’re proposing we create, that’s a lot of nodes under the control of a single entity.
On the other hand, it will be in their best interest to support (not hurt) the network, and that shouldn't be discounted. Moreover, having such big institutional players leveraging the network for their users can only be good. A small amount of inflation is a small price to pay for this. Our decision must carefully weigh the financial implications against the tangible and intangible benefits to the broader XDC Network ecosystem, and the benefits to the network do, I think, outweigh the relatively minor increase in inflation.
I'm a Yes vote.
Considering the current market cap of $800M, the proposed increase in the standby nodes count from 242 to 400 would potentially elevate the inflationary pressures on the XDC Network's market cap by $7.332M annually. Or, assuming current market cap, the annual inflation rate—for standby nodes alone, I’m not counting core node minting—would increase from 1.4% to 2.32%. That’s a 65% increase overall. (See below for the relevant calculations.)
Apart from the inflation, one might be bit concerned about one single entity having so many nodes—assuming they will quickly buy out all the additional nodes they’re proposing we create, that’s a lot of nodes under the control of a single entity.
On the other hand, it will be in their best interest to support (not hurt) the network, and that shouldn't be discounted. Moreover, having such big institutional players leveraging the network for their users can only be good. A small amount of inflation is a small price to pay for this. Our decision must carefully weigh the financial implications against the tangible and intangible benefits to the broader XDC Network ecosystem, and the benefits to the network do, I think, outweigh the relatively minor increase in inflation.
For the CURRENT 242 Standby Nodes Configuration:
• Annual inflation from Standby Nodes: 242 × 66,666 × 12 = 193.599M XDC
• Annual inflation rate: 193.599M/13.8B x 100 = 1.4%
• Monthly inflation from Standby Nodes: 193.599M/12 = 16.133M XDC (or $935,714 @ .058)
• Inflation impact on (CURRENT) market cap: 193.599M XDC x $0.058 = $11.228M
For the PROPOSED 400 Standby Nodes Configuration:
• Annual inflation from Standby Nodes: 400 × 66,666 × 12 = 319.992M XDC
• Annual inflation rate: 319.992/13.8B x 100 = 2.32%
• Monthly inflation from Standby Nodes: 319.992M/12 = 26.666M XDC (or $1,546,628 @ .058)
• Inflation impact on (CURRENT) market cap: 319.992M XDC x $0.058 = $18.56M
Summary of Differences:
• Annual inflation increase due to more Standby Nodes: 126.393M XDC or 0.92%
• Monthly inflation increase: 10.533M XDC or 0.076%
• Market cap difference due to increased inflation: $18.56M - $11.228M = $7.332M annually, a 65% increase.