Quote from: presstab on November 25, 2014, 08:48:25 PM

Quote from: HappyHogan on November 25, 2014, 07:43:54 PM

I had actually checked out the thread before, but never realized this. So I read the OP and am not sure I fully understand. The money supply increases 750% per year? I can't really see how inflation is controlled in that case.

There is a maximum reward of 1,000 HYP per stake. Difficulty targets 1 block/stake per 90 seconds, this translates to 960 blocks/stake per day. This difficulty targets it quite well, as of this moment the last 960 blocks is 1.01 days. If there are 960 blocks in one day, this means that if everyone stakes the maximum amount in one day, it will be 960k HYP added per day. That is what we call "max generation" around here.

It is most likely that we never will hit a full 960k in one day, because everyone will size down there coin blocks so that they won't hit the 1k limit. As time goes on, the coin supply grows larger, yet the max reward stays the same. This means that overtime the coin supply grows less % everyday after we approach the max generation.

In the last day we have added about 610k HYP, about 63% of the maximum generation.

So the entire inflation control mechanism is based around time (long term), and a constant (max reward) becoming less and less compared to a variable (coin supply).

If we suppose that everyday from now on that max generation will occur (again this is unlikely, we are only 63% there so far), this is what the schedule of daily inflation rate will look like over the next two years.

Press, I have added an entry based on this post to the main (Introduction) section of HyperStake Wiki. Hope you don't mind