If you think the reward is too high, then thanks, your point was made, it will not change soon. Many people complained that it is too low for their staking to be profitable. Just different points of view.
Of course it is just about different points of view.
What I want to say is I think a low inflation in the long term is more beneficial to everyone, including both stakers and non-stakers because it creates more demand from investors that results in a higher price.
If the staking reward is too high, a lot of people will be put off by the high inflation.
Take Monero for example, which has a tail emission that results in a perpetual inflation starting with 0.87% and dropping a little every year.
Even Bitcoin's current inflation is below 5% and will just go down from here.
While Monero and Bitcoin miners receive less coins for their work as compared to a higher emission rate, the value of their rewards is higher because the coins are worth more. One of the reasons the coins are worth more is because inflation is low.
Coins with double digit inflation are considered shitcoins for a reason, because it is a bad investment in the long term to simply hold such coins in a cold wallet.
Back to XSPEC's example, you said many people complained that the rewards are too low. Just consider the following example:
Case 1: 1000 coins being staked for one year at 15% reward = 150 new coins. If the coin is valued at $2 the staker earns $300.
Case 2: 1000 coins being staked for one year at 5% reward = 50 new coins. If the coin is valued at $10 the staker earns $500
In the above example, it is clearly shown that a lower reward in number of coins can have a higher value if the coin appreciates in value. In the second case, both stakers and cold storage holders are much better off than in the first case.
The question is, is there any direct correlation between inflation rate and coin value? I'd say it is a very big correlation, and a lower inflation rate can easily be offset by value appreciation resulting from higher demand for low-inflation coins.
Anyway, I don't say that 5% coin supply inflation is extremely high or a big problem, but I believe a lower inflation rate would serve the coin better in the long term, and everyone would be better off, from stakers to non-stakers.
