How is it possible that inflation in BOScoin is so high? They are going to generate 423 million new BOS coins the first year of 500 million that is currently from the Genesis block. That is an inflation of 84% during the first year.
According to the whitepaper every 5 seconds a block is generated and with each block 18 BOScoin is generated for the miners and 50 for the common budgets. Over a year, 423 million new BOS currencies will have been generated. How is it possible that the currency can be so depreciated?
My objective was to keep the coins frozen for profit, but according to the calculations made with the information of the 500 million BOSC whitepaper and assuming that 70% of those coins are frozen in units of 10,000 and the annual distribution is 47 million BOScoin in total among all units, I would only get a 13.5% profit from all my coins a year. Inflation remains much higher than the benefits.
I hope you can answer me. Thank you.
The biggest part of the newly generated BOScoin in the first 5 years are going directly towards the commons budget. The commons budget is an account where BOScoins are held and can only be transferred by proposals that are passed through the congress. The main role of commons budget is to expedite the growth of user base during the early stages. This will ensure funds are available to growth hack the adoption of BOScoin.
After the first 5 years, the commons budget will have achieved its maximum cap of 1.8 billion BOScoin, making up 36% of the total supply that will be available by 2145. From then on, new BOScoins will be generated on a much slower pace through freezing and confirmation rewards.
It's important to know that the BOScoins held in the commons budget are not all going to be in circulation and they will only be available for use when an approval has passed through the congress. Combined with the nature of rewards, it might create an incentive for people to hold and freeze their BOScoin, which could also lower the available supply on exchanges.
You can calculate your possible rewards with
this calculator. The calculator gives you a high level overview of the rewards in the first year, based on some assumptions. You can change the values and see how it affects your rewards.
