1 min read

Owning network access

In case I haven't mentioned it recently, almost all of my crypto is KOIN. My main reason for this is that I don't have to pay gas fees, and neither do my dApps' users. It's the easiest solution I've seen to provide a web2-like experience in web3.

But if you dig a little under the surface, the reason you don't have to pay gas fees is because you actually own your access to network resources:

That's cool, but what are network resources? It's the computers that power the network. Owning access means you can run whatever code you want on those computers without paying a fee.

But don't worry, the people who own and operate the computers aren't being forced to serve you at their own expense. They're making a profit for their effort.

The reason this works is because of Koinos's 2% annual inflation. You can think of it as a tax on KOIN holders that's used to pay the people providing the network resources. You own access to a percentage of the resources, but that percentage slowly decreases over time if you don't do anything to increase your holdings.


P.S. If you want to own X% of the network forever, then you'd want to hold twice that. You'd use half of your holdings to provide resources, thus earning enough mining rewards to match the rate of inflation indefinitely.