Exactly... unless there's more info we're not getting as to the use of the funds
What he is referring to is a misrepresentation and presented as a quote throughout his posts, when it is not a true quote at all. I only present this here because his quote is false - not to engage in destructive arguments. Here is what was actually said:
While I understand that you may feel 10% is too high a rate, as someone who has funded a lot of development work over the past 5 years, I disagree with your assessment. At a 10% subsidy rate, the dev organization will accumulate approximately 302,000 decred during its first year. If we assume the value of 1 decred averages to USD 1.00 over the first year, this means we'll have USD 302K to spend on development work. This is a small amount of funding and can pay for 3-4 full time developers for 1 year, so if we went below 10% dev subsidy it would mean the project cannot fund itself unless its exchange rate is well over USD 1.00 per decred.
The 4% of the premine was paid for in USD, BTC and labor by Company 0 and its developers. Unlike other projects, we did not push the risk of failure onto the community by asking them to fund the work. We have made an effort to lead with our deliverables in a niche where there is lots of vaporware and questionable offerings. As our btcsuite work shows, this work has been going on for years, even without any funding except from me.
What is presented here is a scenario with a dev subsidy of 10%, as it is now, and a hypothetical value of USD 1.00 per decred, under which the project can pay for 3-4 full-time developers. He said if the subsidy was lower than 10%, which it is not, problems could occur in funding development work in a sustainable way. If you read it, that's what it explains.
Sorry _ingsoc you are wrong.
Beyondtext explains BECAUSE OF the 10% block subsidy, decred NEEDS to be priced at $1.00. THEN the project can fund 3/4 devs. ($320,000)
For example,
BECAUSE OF the 10% block subsidy, if decred is priced (by the market) at $0.25, the project will fund only nearly 1 dev. = $80,000
(and will be a fail, as Beyondtext says, because even $320,000 is a SMALL amount of funding)
The 10% block subsidy is not a magic number for success, without decred ALSO being priced at $1.00.
Beyondtext is saying BECAUSE OF the 10% block subsidy, decred needs to be $1.00 to fund required numbers of devs to make this project work.
decred price is totally relevant in Beyondtext's explanation.
