Okay, so unlimited supply, or is there a cap?

Question

Reef Global Community

Tekke

Okay, so unlimited supply, or is there a cap?

#cryptocurrency #de-fi #english #reef

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17.08.2023

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Nova

To understand this further: Reef implements NPoS (Nominated Proof-of-Stake), a relatively novel and sophisticated mechanism to select the validators who are allowed to participate in its consensus protocol. The NPoS encourages REEF holders to participate as nominators. There is no max supply of tokens. We need new generated tokens for rewarding validators and nominators. (Validators similar to Miners in BTC if you know this) Especially in the first few months the staking rewards are very high and it’s therefore very lucrative to put them at stake (through nomination). Staking mechanism generates inflation, and it's completly normal AND staking is not an option or feature, it's MANDATORY to assure the network. INFLATION = MORE TOKENS Without that we would not have a running and scaleable system. The token economics of Reef is very well thought out. Early stakers have a strong incentives to stake or even stake more, since the reward for it is exponential.

0

17.08.2023

Bene Richi · Accepted Answer

Bene Richi

Unlimited is maybe the wrong word. It has not a predefined cap. Supply is managed by the system automatically. Same with other blockchains.

0

17.08.2023

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Okay, so unlimited supply, or is there a cap?

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