How does Hive fight against inflation?

[airdroplrt]

I did some research on hive and figure out Hive has infinite amount of tokens supply. Does this mean Hive can "Print" tokens forever?

If the answer is yes, then how does Hive fight against inflation?

Comments

[sergiomarquina]

I recommend you to read the hive whitepaper for more details.

A little excerpt:

Current Allocation & Supply: Starting with the network's 16th hard fork in December 2016, Hive began creating new tokens at a yearly inflation rate of 9.5%. The inflation rate decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation will continue decreasing at this pace until the overall inflation rate reaches 0.95%.
​
This will take about 20.5 years from the time hardfork 16 went into effect.

https://developers.hive.io/resources/whitepaper.html

Hive on!

[airdroplrt]

I tried multiple times to download the whitepaper from hive.blog, but I failed. It always shows a error message "Access denied". I have no idea whom should I ask to address this problem. I hope the devs will fix the link as soon as they get noticed.
👌Thank you very much for this workable link. I will read the whitepaper for better understanding as per your suggestion.

[yintercept]

The inflation of the currency is the basis of the rewards pool. It also pays for hosting and some development work.

People who buy HIVE POWER engage in a variety of upvoting dances to get their share of the inflation. HP investors consider their piece of the rewards pool in their investment decisions.

The designers of the platform were hoping that the platform would bring in enough new users to keep the price of HIVE from bottoming out.

The inflation is at a fixed rate. So, it would take an infinite amount of time for the currency to expand to infinity. Sergio quoted the whitepaper which sought a 9.5% inflation rate.

Instead of fighting inflation, people on the platform write posts and comments hoping to get their share of the inflation.

Unfortunately, if the site fails to retain users, then the price of the currency will decrease at a rate faster than the users can harvest the rewards pool.

BTW, you can send HIVE and HBD to @null. That destroys some HIVE.

[airdroplrt]

Why on earth does anyone burn money? I find no reason and I'm no joker to do that.
Btw great information. I got some understanding now.
🙁 can't upvote you, cause no voting power right now.

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