Take into account that there's rounding errors, but basically when 1 satoshi gets to be less than 0.5 satoshis, the satoshi disappears.
Well, maaku must have the correct answer for this, but I'm almost certain that this is how it works.
Does this mean eventually all the satoshi's will disappear and not be rewarded to miners, thus eventually destroying all the coins? (Because you can't reward less than 1 satoshi to the miners, right?)
What miners receive will be constant. Actually, it's not like they directly receive the demurrage fees. We've taken a simpler approach.
Demurrage fees are just destroyed, but after the 100 MM freicoin are out there what will be destroyed will equal what miners receive.
So effectively miners are receiving the demurrage fees, but not literally.
If someone losses his wallet, for example, the coins will end up being "recycled". After a wallet loss, the monetary supply will be temporarily reduced, but it will eventually converge to 100 MM again automatically.
Bitcoin on the other hand doesn't have such a mechanism, so the supply will end up being effectively less than 21 MM. The lost coins will just add value to the rest of the bitcoins, but bitcoin devs aren't concerned with deflation or hoarding.
