RE: More on why decreased inflation equates to a lower token price.

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RE: More on why decreased inflation equates to a lower token price.

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bitcoinflood in LeoFinance • 4 years ago

At some point it stagnates out does it not? Bitcoin will eventually just stagnate.

So curious instead of a deflating token on hive is there one that instead increases the inflation by 3% each year? (well I guess Hive pretty much does this with is 3% APR) But I'm curious if any tribes have yet done this and if so how they are fairing. I agree the deflation only rewards early adaptors. A inflated one still rewards early adopters but it can give new ones coming in a better chance and seeing more tokens flow in stead of a slow crawl.

4 years ago in LeoFinance by bitcoinflood

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edicted 4 years ago

If we just leave the inflation around say 10% that is still exponential growth, because inflation creates more inflation. This creates compound yields over time.

For example, if inflation is 100% per year it doubles but then it doubles again the next year, this will x4 the total supply instead of x3 (2x2 instead of 1+1+1).

Personally I think a 20% to 30% inflation rate will become the standard on the LOW END for some of these yield farms, with the high end being like x10 200%-300%.

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whatsup 4 years ago

Do you ever ask yourself what happens to bitcoin after the last one is mined.

I wonder all the time. Who runs the chain? Why if mining no longer produces tokens.

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shtup 4 years ago

When the mining rewards are gone, the miners will still be receiving transaction fees. Whoever mines a block gets the transaction fees from the transactions in the block.

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allcapsonezero 4 years ago

and by that time, the fees alone (in theory) should be more than enough incentive to keep the machines running.

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