Great 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.
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.
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.