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Do I understand this correctly that 90 % of all CGBs are already mined ? So "in 10%" all that's left is POS and Interest...that's pretty cool !
You know what this would be a great opportunity to get some clarity perhaps from MercSuey. The precise details are not critical at this point but I will explain it as I understand it and perhaps someone can correct me. The PoW mining rewards for CGB amount to a total deployment of 1'000'000 CGB. I am not sure if PoS minting is factored into this target, but once the PoW mining has hit its final target of 1'000'000 CGB, the protocol will allow a maximum indefinite inflation rate of %2.00/year assuming all wallet holders are saving for 90 days and minting (not likely), while miners are picking up the %0.5 reward which is given out thereafter. The key point to remember is that this inflation rate is modelled after the gold supply. Like the historical gold supply, it does not hit a limit and stop which would potentially cause unstable deflation and encourage hording.
Are you saying the mining will continue after 1 000 000 CGB have been created and the miners will be rewarded with .5% of all the interests ?
According to the announcement:
• 1.5% Annual PoS Interest
• Subsidy halving after every 50k blocks until reward of 0.01 is reached were it will remain in perpetuity
• ~1,000,000 Cryptogenic Bullion cap with 0.5% annual PoW inflation
This could be interpreted that there is a hard cap but the wording strongly suggests by "cap with 0.5% annual PoW inflation" and "[reward]... will remain in perpetuity" that the 1'000'000 CGB is just a mining target for last non-0.01 reward. From then on a steady rate of at most 2.00% per year increase in the monetary base occurs. In fact the miners will receive at least 25% of all reward, while prudent savers will receive at most 75% of total newly mined/minted CGB.
Yes, as psd pointed out, PoW mining will continue forever at a rate of .01 CGB per block (once this baseline reward is reached). This will occur close to the estimated cap of 1 million, but I would have to take a closer look for an exact calculation. The .01 PoW reward will account for .5% yearly inflation based on the 1 million estimate. PoS interest will pay a max of 1.5% per year - this assumes that all funds are held and not moved, any CGB in circulation would reduce this 1.5% estimate. Basically the max inflation possible is 2% per year once the baseline PoW subsidy is reached.
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