Here are my takeaways from listening to the conversation:
There was a thorough discussion on pros/cons of increasing the minimum price.
- It was correctly noted that the “spam” maybe self-correcting as discussed in Idea 3, and that it is not a first-order concern given that we set conservative limit.
- @protolambda mentioned that he is more of a free market maxi but that he doesn’t see any reason in opposing a higher minimum price if well motivated. (Let me add that I agree, the minimum price is simply a feature of market design. I’m just exploring if setting it a bit higher may actually help the market reach the ultimate free market equilibrium more smoothly)
One thing that seemed to be overlooked in the discussion is the second “issue” that this analysis highlights. Beyond the length of the initial cold-start phase where the price will be at 1 wei, the second “issue” highlighted is that (under current configuration) once demand hits the threshold the price might go up by 10^9x in a few hours. Setting a higher minimum price would help mitigate this issue too, although there are other things that can help in the same direction as setting a less aggressive exponent (as discussed in previous reply).