With the recent updates to the price weight factor in the default selection algorithm it is now up to the free market of Orchestrators to set their price in a competitive manner.
There are several implications for free market dynamics and the motivations for setting a price for each Orchestrator.
Some Orchestrators will set their price based on other participants in the market (whether at a loss or not) in order to gain work.
Others will calculate their cost of infrastructure and set a price based on a formula for profit.
I think we have mostly explored the former option since the launch of the new selection algorithm about 2 months ago, but this post is to focus on the latter option of providing a tool for helping Orchestrators reach a profitable operating model.
I hope by providing tools like this it will help educated the market on how to set our price and move the Orchestrators into a more healthy and sustainable operation.
Here is a link to some formulas for calculating cost for determining your price per pixel.
Feel free to use the link below, copy and paste into your own sheet and adjust as needed. You can adjust the “Number Of Streams”, “Price Of ETH”, "“Price Per Pixel” variables to see how well your setup scales.
A breakdown of each sheet and their formula:
Self Host – A GPU hosted at home with unlimited bandwidth and no extra costs.
Rented GPU – A rented datacenter GPU, $0.01 per GB of bandwidth and $249/mo for rental.
Pool Standalone Cost Per GB – A pool setting where the bandwidth is doubled since it sends and receives the stream twice at $0.01 per GB, basics VPS of $24/mo, and a 20% cut from GPU retained by the pool operator.
Pool Standalone Unlimited GB – Same as above but free bandwidth with a larger VPS of $400/mo.