Quote from: coinling on January 10, 2017, 04:01:12 PM

Some questions just arised for me :

When some big companies or even states want to use Factom and there are not enough Entry Credits on the market. Will Factom just be able to create new ones ?

Whenever a customer wants to purchase Entry Credits to use Factom, Factoids are converted into Entry-Credits - the converted Factoids are out of the system --> burned. So the answer is: There will always be enough Entry Credits because they are "made out of" Factoids. In a best-case-scenario that there would be very very high demand for EC's, the price of FCT would skyrocket to cover the demand. That's in fact what all Factoid-holder would like to see. ;-)

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I mean this is in their interest to serve big companies and to become bigger. But how are Factoid holders secured to not have some big inflations scenario coming from chaning their code in their own interest ?

It's in their own interest to keep the system as secure as possible and to give the federated servers good incentives to run the system. To change Factom in a way that Factoids would become a high-inflation system-currency would be against that, because the price for Factoids would go down for sure.

Maybe it's comparable to Bitcoin. Miners would like to get more Bitcoins per Block, but if it would be too much it would damage the price.

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How does the company make money at all ?

They develop software for companies which want to use Factom. The Gates-Foundation is a good example:

Blockchain-based company Factom has announced it will soon secure medical records on its platform. The firm received a grant from the Bill & Melinda Gates Foundation to provide immutable and easily accessible records.
https://news.bitcoin.com/bill-melinda-gates-awards-grant-factom/

My bet is that they make (or will make) the most money in the mortgage-sector.

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Factoids are like Ether gas , so just fee's right ?

No, Factoids are more a system-currency behind Entry-Credits. It works this way: Let's say you run a company and you want to use Factom. You hire a Developer who writes you a program to do that. Now you need Entry Credits. Since you don't want to mess around with Cryptocurrencies you and I agree that you buy Entry-Credits from me, $0.001 per EC. You order 10k EC's and send me Fiat. I send Factoids to your Entry-Credit-Address and now you are fine.

Means: Whenever somebody needs and purchases Entry Credits, Factoids are converted into it and "burned" because of that. The lower the price per 1 FCT and the higher the demand for EC's, the more Factoids would be burned - and the other way around. That also means that the value of Factoids has a real base, unlike to other currencies. In my opinion it's legit to say Factoids are backed. Some even say they are backed by the factomized data but I believe it's more precise to say "backed by use".

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How does the coin inflation algorythm of Factoids look like?

So let's say a big companies buys Entry Credits, therefore Factoids are burned, how many new ones are created, how are they spread etc.?

Until Milestone 3 (election of federated servers - expected in about 12 months or something like that) there is no Inflation. The total supply is decreasing since launch. When inflation kicks in there will be about 73k new Factoids per months (10% of initial supply per year). But, again: On the other side there will be the conversion/burning-rate of Factoids through demand.

The new 73k Factoids are payment for the federated servers.