Background
Cost of on-boarding new sectors are going down to 80-90% thanks to the work that has been done by (1) Supranational on the sealing process and (2) Sealing-as-a-Service providers efforts to streamline sealing and proving.
New lower costs
The current cost of onboarding a new cloud storage sector is $100/TiB (cryptonet prediction, unoptimized SP) or $48/TiB (reported cost for optimized SPs).
With the supranational work, the cost will decrease to $16/TiB (recently reported PikNik sealing-as-a-service cost) or $5/TiB (cryptonet prediction). This represents a savings of approximately $30-85/TiB.
The pledge cost for new onboarding will remain at $35/TiB ($350/TiB with FIL+), but with these cost reductions, service providers will be able to onboard in one year what they used to onboard in four years.
Summary:
- Current cost of new CC sector on-boarding (gas fees excluded):
- $100/TiB (cryptonet prediction, unoptimized SP)
- $48/TiB (reported cost for optimized SP)
- Same cost with Supranational work
- $16/TiB (PikNik sealing-as-a-service)
- $5/TiB (cryptonet prediction)
- ⇒ New paradigm SP will save ~$30-85/TiB
Impact on SPs
The cost reduction will present three options for service providers:
- Keep operations as they are and increase their returns (less likely, since some SPs will choose option 2)
- Re-invest in more onboarding