Fully agree. Tezos itself is not really decentralized and there is zero intention from the Foundation to improve this situation. Sad. This scares me as a baker. And by making Tezos more decentralized they either have to sell them through OTC, vesting deals with cooperations, or even burning them. If this is not an option, then let’s put half of TFs supply in an on-chain treasury and let Tezos function as a DAO by the community. From my personal side, I can accept the situation for now, but I won’t follow this path of the TF for another 12 months (I know for others it might not be a big deal, but for me it is). TF has to lower its supply - nothing can go wrong, everyone benefits. Especially the community, which would be well deserved.
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I think many are glossing over a crucial point here- TF may actually want us to bring their bakers offline via governance. If TF were to announce a plan to bring their bakers offline, we’d probably see an influx of new investment in XTZ with many more bakers being initiated- some could argue that this is economic manipulation by TF. They are in a tough place legally in terms of what they can and cannot do. Bringing TF bakers offline via governance is actually helping TF, they probably expected this would have already been done by now and are just waiting.
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Once again, leave it to your diatribe of conjectures.
Right, extrapolating someone else’s money is exactly what they want the community to do. Once again, you’re detached from reality.
Just wanted to chime in and mention that inflation is not capped at 5.5% but is capped at a certain number of coins being produced a year which produces a gracefully diminishing inflation curve.
This inflation is lower than most other popular PoS networks and we must not mess with it unless someone writes a brilliant white paper about how it can be done better.
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For comparison the real USA dollar inflation rate is almost 10% using the 1980’s definition of inflation. Therefore Tezos at about 5% inflation is destined to rise in value.
Thanks for this document. I’m wondering, there are different blockchains with different inflation parameters. What will attract users to Tezos? Why would Tez be considered money?
Despite Tezos community claiming it to be the last blockchain, there are new blockchain networks popping up every now and then. When can Tezos really become the last blockchain?
I feel the answer to that is not the foundation grants- but the protocol level invoicing feature. Each team that creates a new blockchain network allocates roughly 5-10% for the team, so each team that wants to add new features to Tezos could inflate the supply by roughly 1-5% let’s say or whatever is better for the network and community. If this would inflate the coin supply, why have another “yield”? Or even if we have it, why is 1% inflation not sufficient to compensate the bakers? If a trillion dollar network could be secured using 10 billion dollar mining equipments, why not use similar parameters to secure the Tezos network?
I’m not against inflation or supply cap. I’m just trying to understand why not have low inflation and inflate supply only by adding real economic value- that is development of new protocol features.
