This post is indirectly responding to:

https://steemit.com/gridcoin/@guk/gridcoin-how-to-generate-value

https://steemit.com/gridcoin/@guk/project-gridcoin-generating-value-v2





It's already built into most developed cultures: "Network with everyone you can." "You are your network." "The worth of your network is more valuable than the worth of your product."

Yet when the term network moves from shaky interpersonal interactions to algorithmic networks (particularly if there is incentive), this value seems to be forgotten.

A blockchain is a network of people enabled by computer code. Its value has little to do with its incentive structure, the one structure which has no direct influence on the actual network. An incentive structure was created to encourage people to participate in the original blockchain network. There exist blockchains without incentive structures.

"Why would people join these non incentivized networks? They are spending electricity for nothing in return!"

No. They are receiving the value of the network. For example, why do people continue to use Facebook when in fact they are giving their personal data to Facebook? People who use Facebook are essentially paying Facebook to use Facebook. They use Facebook because the value of the social network is greater than the cost; the social interaction provided by the Facebook network is of great value to its users and they will use it regardless of cost (to a point, of course).

Why is the Gridcoin blockchain of value? The Gridcoin blockchain is an open ledger of transactions operated by a network of scientists, researchers, and individuals who see value in data analysis. Do not underestimate the value of an open ledger and do not underestimate the value of the network which defines the blockchain protocols. On top of and secondary to the value of the network, Gridcoin has built an incentive structure which helps encourage non enthusiasts to cross the cost-barrier of participation: If you are hesitant to participate due to the cost of electricity, fear not, our network has determined that covering the cost of electricity for non-enthusiasts is a top priority and our protocols manifest that priority as best they can.

It is absolutely critical that we keep basic supply and demand economics in mind as we make decisions, however I do not believe that we should make any decisions based solely on basic supply and demand economics. The value of a network is not supply and demand.

I believe that our priority should continue to be subsidizing electricity costs for Idle Processing Potential (IPP). If we create this solid foundation now, we will have a head-start as the Internet of Things (IoT) truly begins to take off. In other words, I believe that we should focus on building a network which encourages Aunt Alice to hook her new smart fridge up to BOINC. This is not done by focusing on cryptocurrency supply and demand economics, economics which are still entirely undefined (securities, commodities, assets, currencies, what are they?!).

I believe that GRC burning and project funding has a part to play in the future economics of Gridcoin, however I continue to stand against an official move by the Gridcoin network toward a pay-to-play/profit/commercialized system, a system we raged against as Golem, SONM, and iEX were released.

Additionally, cryptocurrencies are evolving every week. If we focus on what GRC is now we might spend months building protocols that are immediately dated as the next blockchain upgrade is released -- EOS, graphene, etc.

I believe in Gridcoin the Network, not GRC.

Fair and obvious disclosure: I own a lot of GRC and would love to see it on the moon. However, I would prefer to see it on the moon with a colony built in 5 years rather than exploding on impact in 6 months.