Think only coins staked will be inflated. This is a kind of incentive for people to stake their coins.
I understand that only the coins being staked will earn the reward. My question is whether the reward is based off all the coins in existence or only the coins being staked?
For instance, if there are 100 coins in existence and 20 coins are staked and the reward is 5%, is the reward 5% of all coins in existence, 100 coins * .05=5 coins rewarded, or is the reward 5% of all coins being staked, 20 coins * .05=1 coin rewarded. If the reward is 5% of all coins in existence, then the true reward for staking in this instance would be 25% (5 new coins/20 coins being staked.)