I’m reading a book called “central banking 101,” (which I

Question

I’m reading a book called “central banking 101,” (which I

highly recommend to everyone) to better understand macro conditions and functioning economies as a whole. any rate, in reading NOIAs tokenomics, I don’t think I read anything that explicitly stated how a 5% annual inflation rate was decided upon. I know it’s to pay validators but I’m personally wondering, if the FEDs goal is 2% annual inflation for a functioning economy (which doesn’t make much sense to me either), why 5% for NOIA? I guess I’m wondering if the team has thought about a potentially more stable way to pay validators? If BTC can have a fixed supply, why can’t NOIA?

#cryptocurrency #english #syntropy

0

03.07.2022

5 ответов

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Captain Jack Sparrow

It makes sense if gdp grows faster than the rate of inflation

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03.07.2022

Kasparas

“Polkadot’s token supply is inflationary, i.e. there is no maximum number of DOT coins as in Bitcoin. In Polkadot, Inflation is designed to be 10% in the f irst year, with Validator rewards being a function of amount staked and the remainder going to treasury. In Syntropy, we lower the inflation rate to 5%, as discussed below.” - this is what is taken as a quote from our official tokenomics, which states the fact that we’re using a reliable and trustable model of inflation from Polkadot. I don’t want to copy/paste everything from the tokenomics paper, but that’s one of the main factors. Also, we’re in the position of PoS, whereas BTC is on PoW, which makes us differ and I’m really not the main guy to share opinions why PoS is better on some strings. Thirdly, BTC’s rewards are now as it is, but might change in the future, so we can’t really compare them in the long run. And lastly, we’re yet to achieve the new utility details and improvements/changes of the tokenomics. Hope I got you some clarification, but as I said, would expect a greater quality discussion/comparison after the phase 2. 🙏

0

03.07.2022

Not Applicable Автор вопроса

Kasparas
“Polkadot’s token supply is inflationary, i.e. the...

It doesn’t but I suppose I shouldn’t be posing such complicated issues

0

03.07.2022

Cameron Thomas

Captain Jack Sparrow
Watch out, @CptCarrot considers that to be a “gotc...

Unlike your approach, hes only asked the question once rather than nuancing out every single detail. But thanks for thinking of me

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03.07.2022

Captain Jack Sparrow · Accepted Answer

Watch out, @CptCarrot considers that to be a “gotcha” question! The reality is, phase 2 will let us know what the final decision is, the current model is subject to change as I understand it. They won’t give a satisfying answer until then most likely. However if there is constant growth, which the internet will have undoubtedly, as long as the network grows at a faster rate than inflation, then it shouldn’t be an issue, right?

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