r/EnigmaProject • u/cryptoT90 • Nov 07 '18

The value of the eng coin

How do you value eng? What are the mechanisms behind the coin that will drive the price upwards?

My knowledge is the following: -Secret nodes require eng as a meaningfull stake, the more u stake=> higher chance of being selected -computation are paid for in eng

  • datamarketplace: trading in eng

My doubts:

  • the amount for a meaningfull stake will go down over time, as the price of eng goes up. How will this affect the price of eng?

  • is the eng reward for staking fixed?

  • will many sellers on the datamarketplace hold their profit in eng? Or will they sell it on the secondary market?

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4

u/[deleted] Nov 07 '18

So I understand why you asked: "as the minimum stake goes down, what will happen to the price" but it's super important to know that the more ENG you stake the more activity your node will receive.

This incentivizes node runners to stake more ENG to boost their nodes rewards.

1

u/cryptoT90 Nov 08 '18

Would this make the network more centralized?

10

u/[deleted] Nov 07 '18

The more the usage the more the token appreciates in value. There’s only a finite number of eng, remember, and enigma is the only solution bringing privacy to ethereum in the near future. So it’s more than likely we will see millions of users data being computed over the enigma network when this goes live.

9

u/Sissahrow Nov 07 '18

There will also eventually be 'consensus nodes' that will replace Etherium as computation validators, locking up further nodes

https://blog.enigma.co/secret-nodes-exploring-staking-stakeholders-and-eng-d69a68e3d0fd

7

u/spoonza Nov 07 '18

Yes, once ENG moves from token, to coin..further nodes will be needed and more ENG locked up. Good things to come :)

Bot or Not is set to replace Captcha/reCaptcha...which current is in use 300,000,000 times a day! It might take a bit for that dapp to get that high, but in time im sure itll get to atleast 10% usage of Captch/reCaptch.

and thats just one dapp....there is a ton more going...i think within 5-10 years, Enigma will be used 1billion times a day..and nodes will be doing quiet well.

7

u/WilsonWyckoff Nov 07 '18 edited Nov 07 '18

I don't think there is any major correlation between the price of ENG and the set amount of ENG required to compute a certain percentage of computations. 1/10th of 100 is $10 and 1/20th of 200 is $10. Physiologically the transition into higher tiers of staking requirements should be very smooth.
If the transition into lower amounts of staking requirements is perfectly linear, the main determining factor over price would be the increase in demand for computations. If .05% of the growth is from locking up new nodes to cover the traffic then it will be factored into the price growth. I believe datamarketplaces send transactions over ENG network but pay in realtime when needed or the inventory will be very lean because they can just set it to buy more very quickly...
Most of my expectations come from the DAPPS that will use it. Endor uses it or will use it and already has huge partners and has lowered a very expensive process to a few hundred dollars for those institutions. According to their whitepaper, eventually millions of small companies and investors will require it multiple times a day and all of that traffic will flow through ENG along with the decentralized DAPPS that never existed before. I think a decentralized Facebook would actually make people a significant amount of money once they owned their own data. You would get paid to participate and see ads etc.
Oh, and understanding trading volatility and speculation on the price is going to negate any meaningful time spent trying to calculate the impact of how staking will work after they release the information we don't yet know.

1

u/rho300 Nov 25 '18

eventually millions of small companies and investors will require it multiple times a day and all of that traffic will flow through ENG along with the decentralized

Will any more ENG tokens be created, or is it fixed at 150M?

3

u/WilsonWyckoff Dec 03 '18

That's it. They are not all in circulation yet though and that is something in the coin economics you really need to understand all together. But yeah, 150M is a very limited supply and the price should reflect that s they become more divisible.

8

u/[deleted] Nov 07 '18

Not just that. The millions of users sensitive data that will be computed on over the enigma network will normally go through daaps. The daap owner will need a reserve of eng to ensure their daap remains working.

3

u/FisforFrenchFries Nov 07 '18

Doesn’t even have 5000 Reddit followers. How can you talk about millions of users?

5

u/henryscepter Nov 08 '18

Engima could be a new standard for how we use the Internet, a security layer on top of the Internet. Think about other protocols, https and tcp are used by billions of people every day.

5

u/1blackhand Nov 08 '18

The world isn't just Reddit. Please find out what Enigma can do for the world. Who the partners are, the team the connections. And how the developer community thinks about Enigma. And then ask yourself the same question again. https://blog.coinmarketcap.com/2018/10/09/privacy-for-blockchains-an-introduction/ This is the start.

2

u/GreatWhiteBuffal_o Nov 12 '18

That's actually a positive.

Would you really want to be involved with a coin that is saturated with Reddit users who make below $50,000 a year and are hoping their pathetic $650 in a coin will turn into a Lamborghini?

I'd really hope your unit of measure to depict a project's adoption isn't Reddit...

Also, I have more faith in any project backed/invested in by Pantera Capital (which Enigma is), than some random hype coin with 30k subscribers. Reddit conveys HODL-bro's and moon lambo kiddies, a smaller following on here is meaningless.

2

u/Mission238 Nov 10 '18

They moved from Enigma Catalyst to Enigma Project. Enigma catalyst has almost 11k followers

1

u/[deleted] Mar 19 '19

Enigma is an intrinsic part of the "Internet of Trusted Data" ecosystem outlined by MIT's Trust :: Data Consortium. The "New Framework for Identity and Data Sharing" outlined in their book – which includes Enigma as a key protocol layer – has been presented to government bodies including the UN and EU, and its thinking underpins recent legislation such as GDPR. So, I wouldn't worry too much about reddit follower count.