Author: Eric Voskuil 2022-07-09 20:54:01
Published on: 2022-07-09T20:54:01+00:00
The discussion revolves around the correlation between market production and price inflation in the context of perpetual issuance. It is argued that math cannot prove how much coin is lost, and even if it was provable, the amount of coin lost converging to the amount produced is of no consequence. The lack of inflation observed may be attributed to loss, but this is an assumed relation. An article by Peter Todd presents a mathematical proof that the coin supply will converge towards a fixed amount due to tail emission/fixed supply, as the coin supply dependent rate of coin loss balances out the fixed rate of coin production. This proof has nothing to do with market dynamics, and it would happen in any system with similar underlying dynamics. The reason to object to perpetual issuance is the impact on censorship resistance, not on price.
Updated on: 2023-06-15T22:33:32.871003+00:00