📅 Original date posted:2022-07-09
📝 Original message:> 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.
> Dogecoin also has a fixed reward
It started out with random rewards up to 1M doge per block, with the
maximum halving every 100K blocks, until the fixed reward of 10K doge
kicked in at height 600K.
> 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.
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.
[1] https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153
John Tromp [ARCHIVE] /
npub1jz…tsze5
2023-06-07 23:11:25
in reply to nevent1q…x0en
Author Public Key
npub1jzv8hadmmqgttce5q9dn69j4msczrwdw898t3fetwyt64gess4ssttsze5Published at
2023-06-07 23:11:25Event JSON
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"content": "📅 Original date posted:2022-07-09\n📝 Original message:\u003e New blog post:\n\u003e https://petertodd.org/2022/surprisingly-tail-emission-is-not-inflationary\n\nA Tail Emission is best described as disinflationary; the yearly\nsupply inflation steadily decreases toward zero.\n\n\u003e Dogecoin also has a fixed reward\n\nIt started out with random rewards up to 1M doge per block, with the\nmaximum halving every 100K blocks, until the fixed reward of 10K doge\nkicked in at height 600K.\n\n\u003e 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.\n\nAny coin without a premine starts with infinite inflation. Bitcoin in\nits first 4 years had yearly inflation rates of inf, 100%, 50%, and\n33%. So deciding on a maximum amount of inflation is deciding on a\npremine.\n\nWhile in the long term, a capped supply doesn't meaningfully differ\nfrom un uncapped supply [1], the 21M limit is central to Bitcoin's\nidentity, and removing this limit results in something that can no\nlonger be called Bitcoin.\n\n[1] https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153",
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