Inflation and Participation in Stake Based Token Protocols

Doug Petkanics
Dec 21, 2017 · 8 min read
Inflation, and hence token issuance, adjusts through three rounds until the participation rate matches the target.

Participants contribute value

More participation yields more security

You need incentives for participation

Target a participation rate to ensure a high quality network, rather than an inflation rate

Participation targets may be easier to move via decentralized governance than inflation rate

The End Result

Doug Petkanics

Written by

Building live streaming on the blockchain at Livepeer. Previously Founder, VP Eng at Wildcard and Hyperpublic (acquired by Groupon).

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