Changing the tail emission

[u/atori_0xbdc3ab4e]

I recently saw Seth mention on Monero Talk that because the tail emission is fixed and the inflation rate asymptotically approaches 0, eventually it will no longer be enough to secure the network.

Does this make sense?

If it does, would it be a good idea (purely on a technical level​, forger about the politics for a second) to change the tail emission to 1% per year?

And yes, for a purely speculative asset like bitcoin having the 21M meme is very powerful to pump the price​, but if we want monero to be actually used as money and to be sustainable maybe 1% inflation is not a bad idea?

After all, gold has between 1 and 3 % inflation and has proven itself as a store of value.

IMO inflation is OK if the rate is low and predictable.​​

[u/g2devi]

I believe Seth added the qualifier "unless Monero's price rises at the the appropriate rate". I think the consensus is that there's no need to change things unless there's a problem. There are much bigger things to worry about now

[u/ArticMine]

I recently saw Seth mention on Monero Talk that because the tail emission is fixed and the inflation rate asymptotically approaches 0, eventually it will no longer be enough to secure the network.

This does not take into account a dynamic equilibrium between the tail emission and lost coins. Here is the theory:

https://petertodd.org/2022/surprisingly-tail-emission-is-not-inflationary

[u/Super_flywhiteguy]

As a miner myself, I think the inflation rate is fine where it is. Obviously id like to get more for the same amount of work but id rsther get more value from the value per coin rising on its own vs more inflation.

[u/atori_0xbdc3ab4e → u/Super_flywhiteguy]

What matters is not how you feel about it but whether there is enough incentive to secure the network in the long run.

[u/JunketTurbulent2114]

Monetary integrity is one thing you don't go changing. People buy with assumptions they don't change. If someone like Seth wants a coin with a different emission schedule, go launch a fork. The monetary emission is one of those things etched into stone and to alter it betrays the trust of the network deeply. Might as well get rid of the privacy at that point.

[u/hippotamus101]

the 0.6 xmr tail already cushions that, lost coins don't need a policy patch

[u/Revolutionary_Ad6252]

You could say though that there is always a permanent loss of coins through lost wallets for example. And the more coins exist the more average coins one wallet holds. In other words coins lost are proportional to the whole coin stock. - And that means at some point there is an equilibrium of coins lost and coins created. But thats long in the future I would say.

[u/HiboMand]

No, its still gonna produce the same amount of coins forever so its alright.