Hey everyone!

well, I barely slept last night; I was thinking intensely about the topic of the potential modification to the daily user:token ratio, and I am confident that I found the right solution.

First and foremost, I want to thank EVERYONE, whomever you are and wherever you are in the world for your thoughts, comments and participation yesterday in the discussion.  What it showed to us all is that we have a fantastically smart, powerful and engaged community that is able to think and reflect as a team and as a unit, and that we are very powerful all together. The new IUM community is top in class and I am VERY proud to be with every single one of you. thank you for joining up with us!

So, I came up with the question yesterday because in the end, the IUM is doing something that is entirely new and something that has never been done in humanity up to this point. A constantly growing (mining) token pool that is pegged to both a daily user:token ratio AND pegged to the block active miner count is completely innovative. nobody has ever done it before at such a large and dynamic scale before. And since it is all new, we are all learning as we go about how this inflation model will behave over time and with fluctuations of active miners. We are all learning as we go, and so am I, and it is normal to reflect and question certain things until they become clearer.

In the end, after intense reflection and spining it all from all angles, I came to the conclusion that our current model is already perfect and does not require any changes at all. As we all know, the key to inflation is it's constance and predictability. Inflation can increase or decrease over time, this is actually fine as long as the rest of the economy proportionally follows with it. But what truly matters is that this inflation be constant and predictable in time. In this vein, I realized that we could not change the inflation model now; it is too late. We made a choice at launch, and now we live with it forever.

The current formula generates very nice numbers. For example, I inquiried with a distant friend that I knew was mining last evening to gather some comments, and she told me that within 3 or 4 hours, she had mined 2 IUMs. I reflected on this and realized, these are fantastic numbers!   0.000343211 would be an impractical number, but 2, it's perfect.

The real issue and what prompted me to consult the community was not the formula per say, but rather that this formula would make very large numbers over time as the daily mining always carries over. For example, when we have a billion miners, then the mining would unlock 10 billion tokens per day! its a large number, even if it remains a proportional 10 tokens per day per miners (which produces stable inflation). There would one day come a time where this number would be too impractically large for the human mind, and this is where I thought we might need to adjust the ratio. But in the end, the numbers are arbitrary and can become arbitrarily large, the only thing affected is their human level usefulness (ease of use. for example, it is much easier to use 10 tokens then 10,000,000,000 tokens, even if 10 is really 0.0000000001 relative to the larger version.)

So, the solution I came up with is to inspire from the concept of decimal readjustments like the mBTC and uBTC concepts in bitcoin and create the concept of an IUM scale modifier that represents the inverse of a 10 based logarithmic scale.


I thus introduce the (tentative) scale format for IUM as IUM|x, meaning the inverse logatihmic scale modifier to apply to the number. the modification formula thus becomes y = IUM * (10^x);

example, for now, the baseline IUM represents IUM|0. so IUM == IUM|0.

10 IUM|0 is equal to 1 IUM|1. (1*(10^1)) = 10;

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1000 IUM|0 is also equal to:

1 IUM|3 (1*(10^3)) = 1000.
10 IUM|2  (10*(10^2)) = 1000.

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1_000_000.1 IUM|0 is also equal to:

1.0000001 IUM|6 (1.0000001*(10^6)) = 1_000_000.1
10.000001 IUM|5 (10.000001*(10^5)) = 1_000_000.1
100_000.01 IUM|2  (100_000.01*(10^2)) = 1_000_000.1

etc.

For the forseable future, we will stick with the default baseline of IUM (a.k.a. IUM|0), but in the coming years, we will add the concept of scale modifier. Then as the token base grows over time, the scale can be adjusted infinitely to push us into the future and maintain perpetual proportional balance.

This concept combined with a stable inflation per block active miner becomes the most powerful inflation method that has ever existed in humanity up to this point. And we can be very proud to be on the forefront of innovation. lets keep going, great things are ahead of us.

I will define all the above in much greater detail in the whitepaper in the coming weeks once I have time to sit down and write this new chapter in our story.