@LEOcoin Foundation
What is the LeoCoin Foundation's position on the effect of POS:
Inflationary or deflationary ?
@Peter78
I think that very much depends on what monetary economic school one adheres to. Some will regard the creatio ex nihilo of fiat currencies by commercial banks as inflation (e.g. the Austrian school), while others - mostly the 80% of Neo-Keynesians - will not. Again some will see inflation connected to the price level or purchasing power, and not already connected with an increased supply. With regard to POS as mechanism of LEOcoin creation, it thus cannot that easy be said, as for both views there can be found arguments. At least will some investment - either in actual (Khs) or virtual (stake) RIGs - be necessary, thus POS may not be ex nihilo or freem, thus to some extend inflationary effects - if any - will be countered. Also getting more LEOcoins will increase total supply - for which again may or may not be demand, working out on the price level.
Currently LEOcoin Foundation is considering our stance on the effects and will publish that later this year, probably in the form of a white paper. With regard to digital currencies being deflationary in nature, I agree, but this goes for most CC and thus has nothing to do with the POS mechanism as such.
