OP:
https://bitflate.org/post/2020/05/01/how-bitflate-is-different.htmlBitflate is a cryptocurrency with constant inflation of 7% per year. Its goal is to be a Medium of Exchange.When I discuss Bitflate on public forums (Twitter, bitcointalk, Hacker News), people tell me that inflation is an old idea. Teams had tried these experiments. Inflation adds nothing new or novel to cryptocurrency. However, with Bitflate, I want to reintroduce the idea of minimalism. Bitflate is the same kind of money as Bitcoin, with one exception, a 7% supply inflation. It will remain so in the future. We will not commit to further change.
Tail emission is not inflationBitcoin has a supply cap of 21 million coins. There are a lot of coins that have no supply cap. Ethereum is currently producing 2 coins per block, possibly forever. Dogecoin’s current reward is 10k coins, possibly forever. These kinds of supply increase are not inflation. They are tail emission rewards that are supposed to incentivize miners. I don’t see the rationale behind this scheme. Constant tail emission will become increasingly smaller relative to circulating supply. At some point, the reward is so small. It just the same as no reward. Dev teams may need to increase the reward if they motivate miners. I don’t think these unstable monetary policies can produce long-term stable money. Dev teams can arbitrarily change the rewards.
Bitflate will have a constant 7% inflation, foreverBitflate’s reward schedule starts at 50 coins per block like Bitcoin. The reward will drop until we reach 7% inflation. Then, it’ll increase at 7%, forever.
0: 50 (increase rate: N/A)
1: 25 (increase rate: 50%)
2: 12.5 (increase rate: 16.67%)
3: 6.25 (increase rate: 7.14%)
4: 6.56 (increase rate: 7%)
5: 7.02 (increase rate: 7%)
6: 7.51 (increase rate: 7%)
I design a reward system to give more coins to early adopters. This bootstrap mechanism creates incentives to hold Bitflate coins. The constant inflation will stay the same regardless of what will happen. I will not advocate for change in this reward system. If I do at some point, you should not listen to me.
Bitflate is minimalisticI’ve followed cryptocurrency for a few years. I conclude that previous experiments with the technology produces little to nothing. These failed experiments are lessons on what we don’t need. Litecoin proved that mining algorithm changes don’t matter. Ethereum proved that sidechains don’t create new use cases. These altcoins were too early. They’re not solving the problem that hinders adoption. I think the lack of adoption is because of volatility. The cause of volatility is limited supply. We need a predictable and constant inflation.
I want to come back to the minimal form of cryptocurrency, Bitcoin. We don’t need more technology. Technology improvements are distractions. Bitflate is minimalistic. We only need a change in the monetary policy. The goal is to create another form of money, a Medium of Exchange.
A Medium of ExchangePrevious experiments, like tail emission, have not fully committed to the idea of inflation. Dev teams and communities are afraid of price crash. They hold on to the idea of a highly restrictive supply. Why do we need inflation? A constant inflation rate will reduce volatility. Inflation is the missing ingredient in cryptocurrency. It is the key to create a Medium of Exchange. That’s the breakthrough we need for widespread cryptocurrency adoption.
Bitflate is a cryptocurrency with constant inflation of 7% per year. Its goal is to be a Medium of Exchange.
