Proposal to Reduce Massa Blockchain Yearly Inflation to 2.5% ( Block reward 0.4)

Massa Improvement Proposals
21

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.

22

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.

As a small benchmark:

  • Inflation of dollar money mass M1 was ~600% in 10 years, while inflation of CPI was 33% in 10 years.
  • 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).
4 Likes
23

after reading the comments I might change my idea. Maybe we should explore more burning mechanisms instead of cutting the block rewards.

1 Like
24

Yes, totally support this proposed inflation reduction measure!

25

Hi,

It’s worth to create a separate forum thread on this.

26

Hi,

  1. Disagree to cut block rewards. Current higher than average market APY is one of incentives that sticked me to MAS.

  2. Your calculations is not correct in a long-term period. MAS price will definitely dump, but not because of high block rewards. Take a look on this:

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Total supply 1.03B MAS
Circulating supply 150.82M MAS (15%)

Regularly I stay away from projects with such a terrific coinomics, MAS is an exception because the technology is attractive.