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RE: A Smart Contract Platform Without Transaction Costs or the Need For 'gas' Will Finally Offer Proper Incentive To DApp Developers. An 'Ownership' Model Will Always Be More Efficient Than A 'Rental' Model In Terms Of Entitlement From Stake.
That could work but only after the developers have paid for all the gas to get the dapp up and running, which is the main hurdle they care dealing with now. Suddenly it makes sense to me why projects like Augur are taking so long to complete. Don't know if the cost of development is the reason but that might make sense.
Just to address the development costs that you mention.
Ethereum allows developers (well anyone) to set up test networks on which they can mine test ETH tokens (https://souptacular.gitbooks.io/ethereum-tutorials-and-tips-by-hudson/content/private-chain.html), which can then be used to test dapp's before being deployed.
Yeah the cost of gas for development is not a problem. Software takes time. Not everyone slaps their app together in a month or two like Dan. This is not true.