How much does it cost to use / licence the platform?

This question was taken from here


Orbs is an open source project with a permissive license (MIT). You can get a copy of the license by visiting each repo in https://github.com/orbs-network

This means that there are no licensing fees to use the platform. This is natural because Orbs is a public blockchain and a decentralized project, so of course there are no licensing fees involved.

Since Orbs is public and global network, it is being run by Orbs validators (nodes operating the network, very similar to how Ethereum has its miners).

In order to run apps on the platform, app developers need to pay operation fees for executing their apps. These fees are proportional to the resources the app consumes (for example how many transactions per second it needs or how much storage it requires).

A detailed explanation of the fees is available here: https://orbs.com/pricing

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Hey Tal,
ORBS aim to built the public blockchain so in terms of fee for the license doesn’t exist.

Questions related to cost:
From the variety of blog and paper which ORBS have published have stated that you guys aiming for low cost. Also ORBS website stated the same.

Most of companies aim for zero or low fee in terms of usage however once the price of the issued coin increase which seems impossible to maintain.
At current stage price of ORBS is pretty low. However like Uriel state multiple times at the community ORBS aims for top 10 cryptocurrency meaning the price initially increase over time.
At current circulating supply -> based on the calculation the marketcap of ORBS has to be around 2 Billion USD meaning the basic price of 1 ORBS will increase to (2 Billion USD / 1635091511(circulating supply) will equal to 1.22 USD approximately.

Other mean in order to use the 1000/tps the company or individual have to pay 40,000 ORBS per month which mean:
Currently 0.04 USD * 40,000 ORBS = 1,600 USD per month
Once the cost increase dramatically will increase the price of usage
eg at 1.22USD will equal to 43,000 USD per month

My question is how to sustain the lower cost once the price of ORBS increase?

I know you busy and all but can i get an answer to this?

Hi @DBA!

Great question about the costs. As you’ve said Orbs is a decentralized network meaning it must rely on an economy that makes sense for it to work. As we all know, designing decentralized economies is not an easy task.

The first thing the architecture needs to address is what is the cost of operating the network for a validator. Everything starts there because if validators can’t recover their operation costs, they won’t participate, or they will have to increase the fees in order to do so.

The architecture is horizontally scalable with the concept of virtual chains - meaning that unlike many blockchains there’s no limited amount of resources so there’s no competition between apps over resources and no bid wars over execution. What this means is that the cost for validators for adding a new virtual chain is fixed and equals the standard cloud cost of running this app separately (this is what makes the cost predictable).

Now that we’ve established that the cost is fixed, let’s examine the price. In an efficient market where demand for the token comes primarily from app developers purchasing computing power, token price is expected to become stable and correlated with the cost of computing power.

If the market is inefficient and token price becomes volatile or uncorrelated with the cost of computing power, validators should uphold the virtual chain pricing set in the initial design of the network in order to stabilize the market price over time.

That being said, since the project is decentralized and the Orbs team doesn’t have actual control over validators or the prices they charge, the network validators and guardians may deviate from the original design. It is possible that guardians take a vote and change the original protocol and adjust its pricing (like they can do with any other feature of the network). This could be justifiable in extreme situations of unfair pricing that could prevent apps from using the network.

However, the Orbs team does not think that this is the desired approach since it would undermine the predictability of the model.

For a deeper dive read through the details in https://www.orbs.com/pricing