Question… Just reading Richard’s latest blog. If the goal is to keep ETN inflation to less than 2% a year, doesn’t that mean we would not see a 1 cent price until at least 40 years from now? Doesn’t that mean that we are going to see trade bots keeping the price at .005 - .006 for at least 5 years?
Inflation is used in a different context here. It does not relate to price. At least not exactly. What inflation refers to in this case is the total amount of tokens that have been issued. The supply of coins is to go up by no more than 2% a year. As long as demand goes up faster than 2% a year for etn the price should go up. This early in the project the odds seem good.
So your seeing it directly related to the supply and not necessarily the price? So, that is why it is also necessary to control the mining aspect of the coin? So, in a sense, the market still controls the price and when it’s utility increases and as more is taken out of circulation (HODL) it’s price will increase?
Mining does close to nothing to increase demand for a coin. I mine with my gpus even now. Nicehash on eth if you must know. I was using asics on etn. A tiny fraction of miners end up holding but most dump for btc. etn has a pretty good use case in terms of being able to go the last mile with crypto that can actually be used for something. Our price reflects the relative failure of creating on ramps for big spends on the buy side. This shows in the lack of demand.
On the upside the proof of responsibility method supports some charities, uses very little electricity, and is 51% attack proof.
No, I was saying that mining has to be controlled to the point of regulating the supply
Electroneum isn’t designed as a stable coin and this has been reiterated
many times by Richard in interviews.
And it is. Mining will be ± 1% and etn issued as incentives for other things will bring it up to a total of 2%.
I was mining early… mined 700,000… Sold my miners when ASICS took over. Unfortunately I didn’'t get a profit from it yet