This section from the economics whitepaper introduces the key system components of the Radix economics model and some notes about how they interact with each other. Use this thread to discuss, debate and suggest improvements.
Alternatively, if you have a detailed improvement suggestion, please follow the steps to do so here: https://forum.radixdlt.com/t/radix-economic-model-improvement-proposals-remip/181
I found a few typos and since they’re in this section, I’ll mention them here:
Page 13: At the end of Stage 1, “the USD-backed tokens in the Reserves sent by”. (missing ‘are’)
Page 13, in the same paragraph, the term “this Basket” is used, but ‘Basket’ was not mentioned previously.
Page 14: “Burnt in the spend transactio” is mising the ‘n’ at the end.
Page 15: The “Hourly Per Atom Subsidy” should probably say “Weekly” since that’s what the formula is calculating.
This isn’t a typo, but on page 15 in the Node Runners section, it’s not clear if the Network Subsidy is per node, or per Universe. I assume that it’s per Universe, but it should be made explicit. Similarly, are the “Total new atom fees” and “Total New Atoms” per Universe, or for a particular node?
Page 17, in the Approved Minters section, under “Fiat Backed Token”. Point 2 isn’t readable. Does it mean that the Approved Minter creates a fiat-backed-token from the currency at a 1:1 ratio?
Page 17, point 6, “transfers 1:1 corresponding not tokens to user” isn’t readable. Does this mean that the AM transfers an XRD token to the user at a 1:1 ratio?
Page 18: “As the Reserves start at zero…” Actually, in stage 2, the reserves won’t start at zero. The rest of this section seems to be talking about stage 2.
Page 18: “the Economic Algorithm will step in and sell the always offered Rads at the Price Ceiling”. You can remove “the always offered”
Page 21: Point 5: “Smart contact fiat XRD” should be “Smart contract sends XRD”
Page 26: “The first opportunity to purchase new Rads starts at Stage 1 and are only available directly from the ecomonic algorithm”, but earlier the paper mentioned that the economic algorithm starts at stage 2. Which is right?
Page 27: - nm(t’) should be - nM(t’)
My last comment is just a preference. Could you make the pages that have the black background have a white background instead? I find it much easier to read and mark up a printed copy, but it’s a waste of ink to print all of that black. I know, I should read it online. But I do want a copy to prove to my grandkids that I was here at the start of Radix… :-).
Thank you very much Steve - I’ve put these all into the queue for an updated Econ paper which will go out in the next couple of weeks.
Regarding the ECA - it is live from Stage 1, but the Price Floor is not operational. I think we should probably be more specific in how we describe that. Will have a think.
For the “printable” version, there is a plain text one on our KB: https://docs.radixdlt.com/alpha/learn/whitepapers/economic-model