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I think the way to discourage hoarding behavior is inflation. Cryptocurrency follows similar models of scarcity like Bitcoin. Some cryptos have tail emission. N
by dnprock 6y ago
I think the way to discourage hoarding behavior is inflation. Cryptocurrency follows similar models of scarcity like Bitcoin. Some cryptos have tail emission. None of them has any meaningful inflation.
I designed Bitflate. It's a cryptocurrency with 7% inflation. The rate is moderately high to make it the opposite of Bitcoin. But it's not too high to cause hyperinflation. Bitflate is a Bitcoin software fork. So there are possibilities to create hybrid cryptos that have inflation rates between 0 and 7%.
Check out my project: https://bitflate.org/ https://bitflate.org/.
- rax0m 6y agoGreat at discouraging hoarding I'm sure! But how can this encourage adoption? Who would want to hold an asset that is designed to lose purchasing power? If nobody wants to hold it, then nobody wants to get it as payment.
- dnprock 6y agoI designed the reward schedule with 4 halvings. The schedule benefits early adopters. It is as follows: Era Reward 0 50 (10 million coins) 1 25 2 12.5 3 6.25 (21 million coins) 4 6.56 ... 10 9.85 (31 million coins) ... 30 38.11 (122 million coins) Even though the supply inflates at 7%, it is still limited. There can be short-term speculation. If short-term adoption rises faster than 7%, the coin can gain value. We're still in the early phases of mining. The reward schedule creates scarcity to allow the coins to gain value.