Martin
@koeppelmann.eth
If demand for block-space is inelastic (insensitive to price) even a small (25%) increase in demand can cause 7000x in price. Longterm we either need to hope for elastic demand or develop other strategies to protect apps and user from fee explosions.
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kbc
@kbc
confused. did you not mean the supply is inelastic? In your example a small change in demand, results in a huge price increase --> price is sensitive to small changes in demand due to inelastic supply. Below you mention "spot market". What am I missing?
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Martin
@koeppelmann.eth
yes, supply is basically completely inelastic. I was trying to say: given a inelastic "base" demand + a slight extra increase == explosion of cost.
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Fran
@0x99fran
This spike in fees was about 1 hour in length. The entities posting data were unwilling to wait 1 hour and prefered the 7000x price increase vs waiting for lower fees. Seems like fundamentally we would need some function of smoothing on the demand side. Like futures contracts.
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