Quote from: MoonShadow on December 13, 2011, 03:38:55 PM

Quote from: BadBear on December 13, 2011, 03:29:27 PM

Quote from: MoonShadow on December 13, 2011, 03:25:07 PM

Quote from: fastandfurious on December 13, 2011, 08:33:08 AM

And the inflation is 33% not 25%.

Yes, you're right. Sorry.

So next year it will be around 25% then suddenly drop to 12.5%.

Wait, I thought it was going to cut the block reward in half, why is it going from 33, 25, then 12.5?

Because the currency is issued at a steady rate, so in the first year the monetary base starts at zero and goes to 2620800, then double that again the second anniversary. So at the second anniversary, the inflation rate is roughly 50%. The same amount is issued during the third year, so around the third anniversary the inflation rate is about 33%. Likewise, the same amount is issued during the fourth year, so around the fourth anniversary, the rate is 25%; then the block reward cuts in half, so the rate suddenly drops to 12.5%. The inflation rate is relative to the monetary base already issued.

Oh I see, wasn't thinking about it that way.