On the site it mentions 1% inflation.
Has that been decided upon?
What is the reasoning behind this?
Why would people consider this a good thing?

If you are inclined to believe him, read through the latest info on the shares thread..
https://bitcointalk.org/index.php?topic=395893.420

His own pocket happens to include 40 of the stolen btc.. Caught red handed.

I'm still involved in Frozen. This is still the main thread.

Thanks for stepping forward with this info. If you have an investment in FZ this evidence may negatively impact that investment so it's a bold move. Thank you.

I recently donated the new website design, and in doing so I happened to log Frozen's IP (and no, he doesn't live in Ohio like he said). I don't know him beyond a few PMs, but I'm still going to give him the benefit of doubt for now. However, if it turns out that he is indeed a scammer, I'm more than willing to let those of you who invested in "Shares" have it. Seeing as how it is a static residential IP in the United States and what he's accused of is felony fraud, I imagine you have a decent chance of recouping some of your losses if you're so inclined to pursue it.

That said, none of this should have any bearing on the future prospects of FrozenCoin. If it turns out he is a fraudster -- a judgement that should at least be reserved for a few more days, then the community will move on and new people will step up to the plate. Trenton, for example, is already doing a fine job from what I've seen.