Ways to prevent inflation and NOAH.P token depreciation in the future of Noah.city
Platinum’s engineers are working hard to ensure that the development of Noah City is successful and brings a stable income to every citizen for many years.
Think about what happens to an economy when a government releases a lot of extra money into the market.
- Money lose value
- Prices of goods rise
- Citizens bear the losses
- The state loses its reputation
Noah Foundation once did this and issued an excessive number of coins — the price of NOAH fell fast. To make sure that something like this never happens again, we need to discuss inflation and the depreciation of the NOAH.P token.
Let’s clarify some things.
Who are the Validators?
Validators are network participants who make sure that transactions are handled correctly. They do so by setting up and maintaining a server (also called a “node”) that stores a copy of all the blockchain’s data.
By becoming a Validator, the person also takes on the responsibility of always keeping up with the right version of the software — the servers have to always remain online and the keys have to be kept safe. Finally, Validators have to be active members of the community and propose ways to make the project better.
This is important but also costly and time-consuming work. Validators, therefore, receive rewards for their efforts, which is proportionate to their contribution. They are also ranked according to the total stake stored on their servers. This is where Delegators come in.
Who are the Delegators?
Delegators are the holders of the coin who support the Validators’ function by delegating their assets to Validators of their choice. It helps the Validators to cover the costs of running their server and encourages them to develop the project further.
Delegators also receive a share of their chosen Validator’s reward. However, if the Validator is disruptive and breaks the rules of the platform, Delegators have to share their fines.
To summarize, Validators help keep the network running by investing time and funds into their own servers. Delegators want to support Validators and thus give them a share of their assets. The bigger the Validator’s total stake, the more influence they have over the platform’s development.
In terms of traditional states, you can think of Delegators as the voters, with the Validators being their representatives. The only difference is that in blockchain, everyone shares the gains and the losses.
And what is mining in this equation?
By definition, mining is a process aimed at emitting more coins. It is usually beneficial, yet it also might be a problem. As we all know, the more there is of something, the less its value is. Completely uncontrolled mining can destroy the value of an asset — this is why Bitcoin has halvings.
And this is why we have to keep NOAH mining in check.
What should we do?
We all want NOAH.P to be a valuable asset. Rapid inflation will halt our progress and reduce the profits of all participants. To avoid this, we have to change mining rewards. But by how much?
At the moment, NOAH inflation would be at about 82% of the total money supply. By “money supply”, we mean the funds of NOAH investors that are in free circulation. Assuming an annual yield of 82%, the value of the coin and its purchasing power should be reduced by 82%.
Platinum Engineers believe that inflation/yield in the range of 50% — 90% will lead to the depreciation of NOAH coins. According to our models, any level over ~20% is dangerous. Let’s take a quick look at other major projects:
1. Ethereum has an annual inflation rate of 5% (current annual emission 5659400 / 111180159 total Supply flow) = 5.1%.
2. Bitcoin’s inflation rate before halving was 657000 / 18 392 000 = 3,57% and after halving has become 328500/18392000 = 1,7% (https://www.blockchain.com/ru/charts/total-bitcoins)
3. COSMOS — the current inflation of the Atom token is 7.5%.
Inflation in the blockchain can also be regulated by limiting the number of coins entering the free market, i.e. implementing ‘quantitative easing’ policies. Technical Validators take over most of the issued supply emission and control the increase of new coins relative to the total money supply in circulation.
If a large number of new members come into the community and delegate their funds, inflation will become even lower.
We want to hear your voice
We hope that each of you understands the seriousness of this issue, so let’s discuss it and make this important decision together.
Let’s have a VALIDATORS meeting and hold a PUBLIC vote about the issue. We encourage all the members of our community to participate in the joint development of the NOAH Blockchain.
NOTE: If the community wants the exchange value of NOAH.P to grow faster, then we need to develop the internal economy, i.e. with internal micro projects. A good example of this is NOAH VEGAS Casino — it was developed by third-party developers.
Our developers and our management will make every effort to support and advise on any micro-projects and any internal economic activities aimed at increasing the value or reputation of the NOAH.P coin.
You can always find all our updates first-hand, just follow these links:
Noah BTCNEXT Exchange:
- Telegram for the English speaking community.
- Telegram, LINE or LINE OPEN CHAT for the Japanese speaking community.
New Noah Blockchain ecosystem:
- Telegram for the English speaking community.
- Telegram, LINE or LINE OPEN CHAT for the Japanese speaking community.
