Quote from: PilotofBTC on December 18, 2017, 05:06:17 PM

Quote from: papachill on December 01, 2017, 11:40:17 PM

Quote from: PilotofBTC on December 01, 2017, 10:40:36 PM

Quote from: pbody on December 01, 2017, 08:16:05 PM

Quote from: fedmahnkassad on April 25, 2016, 05:49:17 PM

Considering the amount of STR that is yet to be distributed, this shit is not going anywhere but down for the foreseeable future.

Read the whitepaper! They are only adding at 1% a year... I use to think exactly what you think here which is what kept.me.from.initially investing. Truth is that the 1% addition each year will have minimal effect on price.

Is that 1% new XLM every year (mining rewards), or just existing XLM that is released from SDF every year? If the latter, is that what the auctions are?

No mining.... it is existing XLM released-

This appears to be incorrect. There is 1% per year inflation built into the protocol. It's not mining per say, but the total population of XLM is increasing.

https://www.stellar.org/developers/guides/concepts/inflation.html

Quote

When inflation is run, nodes carry out the following algorithm:

1. Calculate the inflation pool by (number of lumens in existence)*(weekly inflation rate) + fee pool.
2. Calculate the MIN_VOTE by (number of lumens in existence)*.0005. This is .05% of the existing lumens, the minimum amount of votes needed to get any part of the inflation pool.
3. Tally the votes for each account based on the inflation destination set for every account.
4. Determine which accounts exceeded the MIN_VOTE. These accounts are the winners.
5. The winners each get their prorata share of the inflation pool. For example, if a winner gets 2% of the votes, it will get 2% of the inflation pool.
6. Return any unallocated lumens to the fee pool.

I think this is a pretty creative distribution method. It's interesting to speculate about the different kinds of groups that will campaign for votes to reach the 0.05% cutoff. If "number of lumens in existence" is around 100 billion then they'll need to reach about 50 million votes. Or I guess they could buy that many lumens today for $13 million and vote for themselves Wink