Add Deflationary aspect to the Inflationary Dero addition from year 8


#1

Hi

was wondering. I understand there is a fixed supply for the first 8 years correct?
then an inflationary supply of the 157 000 per year, for infinity.

Understand this is to incentivise protection of the network etc, and supposedly to offset against loss of dero through death, negligence etc.

wouldnt it be a good idea to put a burn rate on dero during transactions? this would also help in protecting the network from spamming, while also supporting the price in the long run?

just an idea.


#2

Hello Abrustetha,

Dero will wind up being lost over time for various reasons like human error, someone passing away or just “dust” (micro amounts of Dero) being left in wallets and forgot about.


#3

Hi Serena

thanks for the response.

going to sound strange asking this…but…is that enough loss?

regards


#4

Hi Abrustetha,

It may be more appropriate to look at Dero like this “Dero is not simply a privacy coin, but an asset, or even the fuel if you prefer that powers a privacy based blockchain.”

That being said, this is a topic that we could probably write books about just regarding Dero, however, Dero is not meant to be a simple currency. With too much deflation, we start taking fuel out of the system which may also encourage hoarding among many other (potential) issues.

On a percentage basis, the % of total Dero issued each year will consecutively go down though the actual number of Dero remains the same at 157,680.

While scarcity can be a good thing for digital assets that can be considered akin to digital gold, a network that uses Dero to power it will require a constant, yet limited source of new fuel for the network for various reasons.

Regards,
Serena

(Feel free to continue following up as you would like)