Surprisingly, Tail Emission Is Not Inflationary



Summary:

On July 11, 2022, Erik Aronesty via bitcoin-dev and Peter Todd via bitcoin-dev had a discussion regarding the assumption of constant rate for losses in Bitcoin. Peter Todd assumed that losses occur at a constant rate, however, Erik argued that losses could be at a predictable rate that's entirely different from the one Peter assumes. Erik provided an example where if lambda changes with t, then the integration step would give a different result. Peter Todd then asked for an example of an actual inflation rate that could be seen given a disaster of a certain magnitude. However, he stated that he did not think the proof was useful as there is no reason to believe that miners gaining all the coins lost in a year will be sufficient for anything. Furthermore, he did not find the "security budget" framework particularly meaningful.


Updated on: 2023-05-22T20:39:06.129450+00:00