On Sat, Jul 09, 2022 at 04:57:57PM +0200, John Tromp via bitcoin-dev wrote: > > New blog post: > > https://petertodd.org/2022/surprisingly-tail-emission-is-not-inflationary > > A Tail Emission is best described as disinflationary; the yearly > supply inflation steadily decreases toward zero.
_Apparently_ inflation. True monetary inflation includes lost coins - both intentionally and accidentally lost. It's quite possible that even with tail emission Monero is currently a monetarily deflationary coin, as the lost coin rate might be higher than the 0.8% apparent tail emission rate. We just don't know. Doubly so in the case of monero where its privacy features hide coin activity. > > If an existing coin decides to implement tail emission as a means to fund > > security, choosing an appropriate emission rate is simple: decide on the > > maximum amount of inflation you are willing to have in the worst case, and > > set the tail emission accordingly. > > Any coin without a premine starts with infinite inflation. Bitcoin in > its first 4 years had yearly inflation rates of inf, 100%, 50%, and > 33%. So deciding on a maximum amount of inflation is deciding on a > premine. Hence why I specified an *existing* coin. > While in the long term, a capped supply doesn't meaningfully differ > from un uncapped supply [1], the 21M limit is central to Bitcoin's > identity, and removing this limit results in something that can no > longer be called Bitcoin. Personally I think basing your identity on a technical point that isn't even correct is stupid. And I suspect than when push comes to shove, if in ~10 years or whatever Bitcoin turns out to be unstable without a reward, the market as a whole will be happy to redefine Bitcoin to remove the 21M limit. Whether or not it can do that fast enough to avoid Bitcoin dying first is an open question. -- https://petertodd.org 'peter'[:-1]@petertodd.org
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