Tezos will use a non-dilutive inflationary policy set at a rate of around 5%. Non-dilutive means that if 100% of the network staked, 100% of the network would receive about 5% more tezzies each year, thus making the effect of the inflation neutral. If people do not choose to stake but you do, you will earn proportionally more than the inflation rate and thus be rewarded on net. Conversely, if you are selected to validate block(s) and do not for the entire year, you will not receive any additional tezzies and your stake will proportionally shrink by about 5%. Delegates are likely to share some of their block reward in a bid to attract more delegation. This can be amended by stakeholder vote in the future.
How you can achieve non dilution if you are issuing new assets? The newly issued assets will diminish founder stake at ICO (unless you hold all assets at stake for every time you apply the inflation policy) if this is the case then how the community will ensure you do not take advantage of this position to manipulate the inflation at will due to the dominance tokens founder hedgefunds have? Could not be this a way for a dump and pump strategy?Even if they are “philosophical aligned people” they are 10 people and nothing prevents them to collude… I do not trust people.
Please clarify this point.
He is referring to the same effect as a stock split: there are twice as many shares, but all shareholders are holding twice as much.
I still think 2% would be more appealing to outsiders. It can’t be possibly all tezzies that will be involved in staking, some holders will have some of them in a hot wallet (phone) for purchases.
Sorry I do disagree this has nothing to do with an split. A split means all the share are splinted, and here we are talk king about that NEW shares will be created at 5% rate for those share at stake(locked for a period of x days) like a time deposit With 5% interest rate.
I do believe tezos is about democratization, howeve if the policy can be voted only with people with shares at stake, then the 10 hedge fund with 42% controlling the power might lead to policy manipulation. Hence this should be detailed on how will work for the good and for the bad to bring as much transparency as posible to this very sensitive for not saying most important aspect for the future credibility of the token.
Don’t tell the history if this all goes good… I want to hear what could posible go wrong and the consideration being taken. This might lead back to centralized desicioin which I’m ok with that, but only if I know the rules in advance.
A good example the ethereum fork, even if distributed, it is a fack Vitalik has enough influence to change the destinity of the platform. Also the policy control.
learn fin past mistakes and start building reputation NOW what could go wrong and how you will manage it.
I don’t think we disagree actually. I agree with you that a split is on all shares, but what I am saying is that Jonas was alluding to the fact that if all tezos were being used to stake, then it would be the same as a stock split.
In reality, I very much agree with you, it will never be at 100%, but I won’t to speculate on what it would be.
As for the policy voting by stakers, I did not comment on this point, but you do raise a good issue.
Time will tell, but I think as long as we have plenty of competition with other crypto currencies, the major stakeholders (funny the double meaning here) will probably be voting towards policy that will make it appealing to the general public if they want the mass to be attracted to Tezos.