Post
Topic
Board Development & Technical Discussion
Merits 5 from 3 users
Re: "Surprisingly, Tail Emission Is Not Inflationary" -- A post by Peter Todd
by
NotATether
on 12/07/2022, 04:00:35 UTC
⭐ Merited by Foxpup (2) ,ETFbitcoin (2) ,JayJuanGee (1)
My point was that it's hard to get tail emission right.

You can't get tail emission right. A good TE value in a certain market conditions is an awful TE in different market conditions. The success of tail emission depends entirely on whether the number of miners stay almost-constant thoughout the lifetime on the coin. Just like in economics, there is a break-even point in the number of miners where more miners joining the network will not see an increased reward - as the price (which is dependent on users buying and selling) works independently from miners.

By supplying Tail Emission you constrain the network to a certain number of miners, and since there is no noticeable increase in hashrate, there is no corresponding increase in coin scarcity either, hence no price increase - miners will have to support themselves on a block reward (i.e. TE value) which has a fixed USD value forever.



I don't like BMM not because of any technical problems with it, but for a political reason - it will confirm the association of bitcoin with other shitcoins, on a protocol level [bad press confirmed].