Reducing inflation reduces the stake rate that people will want to hold the token. If it is inflating at 8% then people want 3% plus some extra earning potential (we know this because the staking return on HP is not fixed, it depends on willingness to stake). If it were inflating at 1-2% then the latter would also be different.
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The staking rate can go up if we move rewards to layer 2 and redirect that 65% or whatever allocated to the reward pool to staking, no?
I tossed in the HP affect your HBD interest % thing as a random thought for added utility of staking HIVE if curation were to go away. Without curation, RC and governance seem like mediocre use cases for staking for the average person.
Sure it could I'm just pointing out that the original suggestion to reduce inflation is also plausible.