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Anders Elowsson
@anderselowsson
Practical endgame on issuance policy This post presents a practical endgame on issuance policy that can stop the growth in stake while guaranteeing proper consensus incentives and providing positive regular rewards to diligent small solo stakers. https://ethresear.ch/t/practical-endgame-on-issuance-policy/20747
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Anders Elowsson
@anderselowsson
The post also introduces a tangible framework for Ethereum that is easy to understand: never exceed an issuance rate of 0.5%. A stringent cap on issuance is desirable because it caps the inflation rate, solidifying ETH as trustless sound money with preserved economic security.
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xh3b4sd ↑
@xh3b4sd.eth
All of this work on the issuance policy is based upon flawed assumptions of which none hold any reliable truth. The fundamental issue with these proposals is that you try to effectively decide what is right, without knowing what is right. And that means, whatever you do, you will always be wrong. The core problem is that we cannot quantify the required amount of economic security. And if we cannot do that, then we should not change the issuance policy. Because otherwise, one bad decision leads to another bad decision and in due time you come around again and tell us how the issuance curve has to change once more. The way this problem should be approached is by allowing the free market to decide how much economic security is necessary and therefore allow the market to define the issuance. This problem should not be approached by giving individuals the power to affect the issuance curve, because individuals will always be wrong about such matters.
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