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