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

in LeoFinance4 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%.