Yes, new coins are created when staking (some 2.5% per year). These new coins created as a reward for staking are actually a built-in inflation.
you can call it inflation, interest whatever you want.. its still a small incentive for people to hoard coins. thankfully not as big as other PoS coins. and obviously not big enough because mintpal still had more than 30% of the entire supply.
It is incentive to secure the network
wow its people really like arguing semantics today...
you get paid to hold the coins in one place instead of spending them.. this leads to centralization. it doesn't matter what you call it... the effect is the same... people are encouraged to put the coins in one place so they can get even more coins... if the coins are in one place they can be stolen more easily...
how much more explaining do you need?
i dont agree, you are right now talking about being a curreny (spending them) or a store of value (hodling).
i think both fits for crypto.
as long as the amount of coins that exist is divided so that no entity have more then 50% of the amount of coins that is always staked it is all good.
/edit
in the way its the same why bitcoiners dont want a entity to have more then 50% hashing power of the bitcoin network.
/edit2
hangout started btw!
hope your listening to it.. they explained pretty much a lot of what I have been saying this past couple of days. (even the big difference between 51% PoW and 51% PoS attacks)
the only thing I don't agree with is that people had a choice to accept the rollback or not......
yes sure they could NOT update their wallets.. but if they did that then they would not be able to send coins to any of the exchanges or use any of the vericoin services so it really wasn't much of a choice.
everything else they said I pretty much agree with.