Can someone please make an INFLATIONARY coin?

[batman, not crabman]

I know nothing about making a crypto-currency, but all appear to be deflationary which encourages hoarding, not spending, as the value goes up over time.  If this was such a good thing then most governments would have stopped creating extra money long ago.
A coin needs to decrease in value (slowly and consistently) to encourage trading and keep the coins in circulation.

So, can someone (or better yet a group of coders + economists) get together and create a coin that addresses the shortcomings of previous 'get rich' coins.  As I see it the main 2 issues are the coin's value (over time) and transaction/confirmation time.

I don't know enough about this to suggest how it gets done, but I assume that an increased block reward over time would do it.  The devil is in the detail though, as the reward needs to scale with adoption.  If it goes up too fast the coins will become worthless and if it goes up to slow the currency will be deflationary.  I assume that inflation of ~2% pa, in line with most government targets would be acceptable, but I'm not an economist.  Perhaps the block reward can scale with difficulty?

This also opens up another can of worms, since the increasing block reward will mean that there is no upper limit on the number of coins available - is this even possible?

Much discussion ensues...

[bohanz]

http://freico.in/ encourages circulation and discourages hoarding. It has been out for quite some time now

[bitdwarf]

Encouraging circulation a coin inflationary doesn't make.

For Freicoin, deflation's increase of value is stacked on liquid coins, but it's still deflation, specially considering the cap is only 100 million coins and some of them get lost or idle all the time.

YaCoin and NovaCoin have a minimum inflation via 5% yearly interests on savings, up to 2 billion coins (further inflation will surely be provided by auxiliary coins). True, it protects savings, but not any financial trading that moved coins around, unless trading was made with derivatives.

[tutkarz]

There is no point in deflationary crypto. Its primary role transferring value does not rely on amount of coins but on value. For other purposes you can use fiat which is already inflationary.

[GSnak]

Not so sure the US Fed making a coin would be good for cryptocurrency.

[erk]

Inflationary coin already exists. It's called USD, we don't need another.

[LeChatNoir]

I know nothing about making a crypto-currency, but all appear to be deflationary which encourages hoarding, not spending, as the value goes up over time.  If this was such a good thing then most governments would have stopped creating extra money long ago.

I stopped reading here.... LOL!