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Re: On block rewards


Hi All,

Thanks John for making the graphs!

The graph of monetary inflation for a constant supply coin concerns me

Central banks managing stable fiat currencies generally target 0% to 4%
price inflation per year.

Upon entering the 12.5 bitcoin block reward era a little under 8 years
after being released, bitcoin hit 4.17% yearly monetary inflation (without
taking losses into account) which makes it competitive with stable fiat
currencies, even if demand stays flat.

With a stable supply of coins, it looks like Grin will take 20 years to
reach 5% inflation. I worry that this will hurt its competitiveness as a
store of value vs Bitcoin, fiat currencies, and cryptocurrencies with
thinner tail emissions.

There are upsides, since coin distribution is likely to be less uneven, and
pricing might be more stable.

I think that a constant block reward is kind of a settled topic, so I don't
mean to start a debate, just wanted to add my two ₲.


On Thu, Nov 2, 2017 at 9:47 AM John Tromp <john.tromp@xxxxxxxxx> wrote:

> On Thu, Nov 2, 2017 at 3:39 PM, John Tromp <john.tromp@xxxxxxxxx> wrote:
> > The attached plot summarizes how the bitcoin emission compares to that
> of grin
> > over the first 200 years, assuming a 2% yearly loss of coins.
> Here's the same plot, as well as one for inflation, as a gif.
> Maybe these can be added to
> https://github.com/mimblewimble/grin/wiki/fees-mining
> regards,
> -John
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