Inflation in Pivx vs max supply coins


#21

The value of an individual coin is irrelevant (aside from psycology). What matters is each user’s share of the market cap before and after each minting. That is all.

If everyone could save and stake, everyone would have the same share of the market cap on average year after year. The minting doesn’t have to cover any particular cost. The minting plus the fee has to cover the infrastructure. If the minting pays, the community subsidizes the transaction. If the fee pays, the user does. We toloerate the subsidization of transactions because that is the normal way of doing things.

Auatrian economics says that the any given quantity of money is optimal, so long as it is practically divisable. And it also shows that the only important question WRT inflation is who gets the new monet first.

Perhaps the ideal solution is to mint all coins at the outset and just sell them – using fees to cover the transaction costs. But that isn’t sexy.

But if we assume inflation, it is best to allow all users access to new money in proportion to their stake, as PIVX does. Otherwise savers will suffer losses day over day.