Question on the number of Delegates and Why

[bytemaster]

Do you gain more value per delegate than cost of running delegate.  No. 

[VoR0220]

Sorry to drag this this back up from the dead, but I have another question. At what level of users and transaction volume would it be profitable to go beyond 101 delegates? I would figure there is a mechanism in the tx fees to increase if the network and volume of transactions grow.

Never profitable to go beyond 101

Even if tx fees were to hypothetically rise or there were to be a higher volume of transactions? Even if we were to be running a billion dollars through the network, it still wouldn't be profitable?

[bytemaster]

Sorry to drag this this back up from the dead, but I have another question. At what level of users and transaction volume would it be profitable to go beyond 101 delegates? I would figure there is a mechanism in the tx fees to increase if the network and volume of transactions grow.

Never profitable to go beyond 101

[VoR0220]

Sorry to drag this this back up from the dead, but I have another question. At what level of users and transaction volume would it be profitable to go beyond 101 delegates? I would figure there is a mechanism in the tx fees to increase if the network and volume of transactions grow.

[thisisausername]

No.  The network's ability to generate value from tx fees is fixed (-ish, constant with regard to the size/value/use of the network.)  The total cost of all minting nodes is a linear function on the number of nodes.  Ergo, above a certain number of minting nodes, the cost of running all those nodes exceeds the network's ability to generate value from tx fees.  This will lead to ad hoc centralization as people merge their stake -- reducing the number of nodes -- below the cut-off for the network being profitable as a whole.

Having more nodes doesn't make running any individual node more expensive, it just spreads the rewards of running such a node more thinly.

[jamesc]

Is there an increase protocol overhead?

[VoR0220]

Thanks Nikolai.

P.S. Message me when you get the chance.

[toast]

Try this:
http://wiki.bitshares.org/index.php/DPOS#Scalability

[VoR0220]

As I've read the developers tool kit synopsis, I've come across something that says beyond 101 delegates that DPOS will lose a lot of its efficiency. How come? Would somebody feel the need to explain it to me in technical terms why adding more delegates than 101 is detrimental to the efficiency of the coin? Much thanks in advance.