Regarding FLOW, I was lucky to invest in their ICO, and it’s no surprise that the price was flying down after people did 461x(based on ATH shown above) on their initial investment, so I don’t think that is only related to inflation.
To be honest, the current 6% is not too crazy, and of course, I would like to see APY below 30%. However, we do not need to do anything. It’s just a matter of months.
What matters is whether people are using the Massa blockchain or not. Inflation will go down on its own.
Btw I think there is a confusion here between inflation of the supply and inflation of the price of goods.
The target inflation of central banks you describe is about the inflation of the price of goods (CPI) (or devaluation of the money). While the inflation due to block rewards is the inflation (increase rate) of the money supply.
Inflation of USDT supply was 50% in the last 12 mth (88B to 132B), while the “target inflation” is 0% wrt USD (stable coin).
Inflation of BTC supply was ~1% in the last 12 mth, while its price is up 150%, equivalent to an inflation of minus 60% (if goods = USD and money=BTC).
I agree that this makes sense from the standpoint of stakers, less so from the standpoint of non-stakers (eg. users) from whom value is extracted. For the success of the blockchain, we need both of those groups to be happy. It’s a delicate balance that is hard to estimate, which is why we want to subject it to community vote. That being said, your argument of Massa being attractive due to its high staking APY is completely valid.
The fact that the initial distribution is released progressively over years instead of having been fully released at launch was a requirement to avoid the risk of instant death of the project at launch. The effects on price of a given group deciding to sell (assuming they do) tends to depend on the price at which that specific group acquired the tokens. The net effect of sales on price is hopefully compensated by the influx of new users buying to use the services being released (or to speculate). This topic focuses on addressing one particular source of price leak, but of course there might be others, so feel free to open a dedicated topic on any particular one you want to address.
I would also like to point you towards two other topics to get your feedback:
https://forum.massa.community/t/dynamic-inflation - longer term, when usage increases, inflation might not be necessary anymore. That proposal ensures that staker compensation increases with usage, while reducing/eliminating inflation
