one question: what is the max. supply of phs ?
edit: 8.9 million correct?
Hi,
Hard coded cap is the same as NVC/PPC, which is 2 billion.
Since PHS is PoS only, hitting a hard cap would give 0 reason to stake anymore, so setting a hard limit isn't feasible anyway (fees are destroyed). IF we make no changes to code, and assuming 100% of PHS stakes constantly, this would take
~18 years. Of course, we average ~70% or so of staking so in reality closer to
~24 years from today.
PHS works by consensus of the network, my current feelings is we should cap the amount of stake per block sometime in the next year or so. But this will need to be an open community decision.
The average for the last 50k blocks was ~441.2 blocks per day and ~2,102 PHS created per day.
Just an example, but an option:If we set a maximum stake of to 10 PHS per block, we would limit PHS production to ~4.4k per day. (could do more or less). At 10 million PHS this is a 16% annual inflation year 1, 15% year two... etc, decreasing in % on a steady curve.
Bitcoin of course has a hard limit and designed as a store of value, with PHS we have some leverage in what we want to do, a healthy 4% annual inflation in 10 years onward would also be feasible. Ultimately it's up to you guys to decide.
PD
May be a mistake above in the number, Just wanted to illustrate options.
thanks!
okok, sounds really interesting your idea ,but for me its hard to say which interest works near the best .of course at the moment 50%
- Store of value: high rate
- Use in everyday life eventually: low rate
PHS is secure thanks to the many people staking it, thanks to the high interest. The overall value of the coin doesn't change. Inflation reduces price, meaning that 1 PHS today is worth more than 1 tomorrow; as you have more when you stake you keep value stable. We are irrational animals, even if the value remains constant, it just "feels good" to receive stones
For instance, I've seen other coins with interest up to 20% not getting enough staking... (ok maybe they were shitty in the first place)
However for business it's a pain in the ass to have to adjust prices all the time due to inflation. So a high rate would be prohibitive.
As long as cryptos do not get wide business/everyday acceptance I believe a high rate is needed.
As cryptos move to wider acceptance, it makes sense to lower the interest rate (i.e move from store of value to everyday use).
In this context, constant production of PHS (a la Ethereum) could be an acceptable solution.
However it is highly risky. In fact it works only if the total value of the coin evolves at the same rate to compensate the inflation so that the price per coin remains at least constant. If it's not the case you're in a negative spiral, gradually limiting the interest in the currency with lower amount of coins at lower value per coin. Then making it less secure, further pushing coin value down.
In fact, the problem above would arise whenever we start playing with the interest curve (i.e. evolution of interest rate over time).
We would have to make assumptions as to what would be the best rate at different points in time based on price and market cap, to ensure there is enough incentive for staking over time.
This would probably be tied to if, when, or how fast we think cryptos would get wide acceptance. The sad truth is that we have no clue... So our assumptions would likely become obsolete/wrong over time. And at that point what do we do? Change the parameters? That'd be acting just like a central bank. And no offense, but i would still trust more a central bank than a bunch of kids playing in the crypto sphere...
Over the long term, a system like NXT would work best as no new coins are created, leading to 0 inflation and making it appropriate both for everyday use and value storage. But this requires high transaction volumes to be secure (i.e. provide enough incentive for staking as reward is based exclusively on transaction fees). This is much better than constant low inflation rate as in the context of business use, any inflation is a problem.
Don't know if it helps. At lease for now 50% is good, and any change will need to be very carefully thought through...
