Fixed inflation formulas in crypto projects have always annoyed me. It's a recipe for disaster because you basically have to have economic growth that matches the rate of inflation just to stay even (not quite, but ok for this discussion). Most real-world currencies have some means to influence inflation when they need too.
I guess it comes down to what you want to control; exchange value is a pretty important metric in crypto. Most central-bank based economies use inflation manipulation to control their economy and exchange value (with other fiats) is a concern but often not the primary concern. I think exchange value matters so much in crypto because most tokens quite simply do not have a vibrant internal value transfers.
You are viewing a single comment's thread from:
I often think that the demand here could explode if there were more draws for those not here already. We have famous artists, famous bloggers, personalities etc. But none of them are seeing this for what it offers (so far). If just a few would see it, whether here already or not, they could by the love of their own fan bases create such a demand the current inflation rate wouldn't keep up.
Yeah, afaik, we can't control the inflation rate in this economy. So we need to come up with other monetary policy initiatives that counteract its inflationary nature. Otherwise, by definition, we get a reduced token price in the long run. And, really, nobody wants that.