Thursday, October 22, 2020

Where is the risk in shard banking?

 The top account my see miner fees drop, remember, it has to prepay for an allotment of short chain cash. Price can drop below the prepurchase price, and a rel loss occurs on overpaid miner fees.  If miner fees suddenly drop cash holders will redeem. The short chain shortens,  maybe empties. The reversion is not a long chain, the miner's share above the shard is not a big share. If the chain is empty, then adjustment across the main chain is not needed and the shard has lost all its prepaid fees.

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