Here is a recap of the proposed distribution by team Arctika for v7.

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https://openlibra.io/

(3) The Final Supply is recommended to be 10 Billion tokens. The chart below gives you a before/after look at how this would impact the token balances of the various groups (note the "Before" figures were done a couple of weeks back, so obviously the token supply shown is not current, but the math is solid)

Part of it is to stop inflation. Inflation is a deceptive tax on depositors. Users, developers and entrepreneurs coming into the ecosystem should have faith that their stake and work should not be diluted.