One point worth making is that, on periods of low consumption, the idle coins will generate PoS creating an automatic "economic stimulus", while in periods of high consumption more coins are moving around and never idle long enough to generate Stake blocks, which will decrease inflation automatically cooling down the economy. YAC's 5% PoS (in practice, I would never expect more than 50% of coins idling, or less than 25%, so the real supply inflation would e 2.5% - 1.25% plus mining) seems high enough for this effect to have significance in balancing the economy.
Good point about the 'real' proof of stake. Let's also remember the deflationwith transaction fees.
But when it comes to the 'velocity' of money, wouldn't you want the opposite effect? VM=nT where V is velocity, M is money supply, and nT is nominal value of aggregate transactions (good, services)... So with bitcoin, once it reaches the total supply limit, as bitcoins are used more (velocity), the more value is given to the transactions which is 'stored' in the value of each bitcoin as the amount of 'stuff' you can get with each bitcoin. Thus, spending is encouraged in high production times and savings are encouraged in low production times. With yacoin, isn't it the opposite because of how proof of stake works? ...? Inflation (M increase) occurs in a stagnant economy (V decrease) which makes people think the value of the currency (nT) increases. Thus, the value of the currency is determined by the money supply and not the velocity of money, which encourages more inflation and not real production. Do I have this confused?
It seems like the coin has built-in Keynesian theory mechanics.