This is an overall effect, some humans won’t but others store as much as their wallets allow. When the price rises from 2$ to 10$ people find they can buy more resources per $ and then do so. Now if cost $$$ of SNT is 10$ the change is only in the base SNT that the network will be using. Thus the $$$ cost to store comes back to around what it was before.network sees this and space no longer as scarce.people add more Nodes/space to get rewards.Scare resources increase network payout (SNT) for rewards.people buying SNT for buying resources reduce their slowing.people with SNT slow buying resources.people slow buying SNT for buying resources.spare storage starts to be scarce then the network raises store cost (Higher SNT to store).And from there the 2 interrelated negative feedback loops bring back the pricing to the “base price” when major jumps in price OR storage occurs.įor example the “base” price of SNT is determined to be 2$ then if The base price will be determined somewhat by speculation together with what the market will bear. It can stretch but the further it is stretched the strong the pull to bring it back to reality (base price). You can think of it as a rubber band control. While in some cases the trend will seem to be not followed, the negative feedback will bring it back into control. This is a negative feedback loop system using human nature. When farming rewards decrease (higher spare space) overall humans will remove some storage space When farming rewards increase (lower spare space), overall humans will add storage resources.
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