Good day divi boys and girls.
I have been thinking about the Divi minting rate/100% ROI/Inflation rate a lot the last few weeks and have come to the conclusion that the right thing would be to change it.
A 100% increase of coins in a year =
Year 1: From 600.000.000 million to 900.000.000 billion.
Year 2: From 900.000.000 billion to 1.350.000.000 billion
Year 3: From 2.025.000.000 billion to 3.037.500.000 billion
Year 4. From 4.555.250.000 billion to 6.834.375.000 billion.
This is pretty crazy numbers. Even worse, the new coins, around 50% we assume ends in staking wallets and masternodes and produces even more inflation! In reality inflation will be around 150% year 2, year 3 around 225%, year 4 around 337%. So it explodes in reality. A thing that is fine if the total coin supply is only 6 million from start but not if it is 600 million.
Because of the 1:100 coin swap it does not give meaning anymore to me to have this high minting rate.
The primary reason for the doubeling of coin supply a year was we started at only 6 millions Divi so we wanted to fight the coin price becomming the new Bitcoin with crazy high price scaring normal people from using divi because of the mental factor. Let us call it the “gold and bitcoin scary high price a unit” effect.
To make Divi much easier to sell the goal was to have the price closer to fiat prices. Look EOS, priced 5 USD a coin curreny. That was the goal or under a dollar like Ripple or IOTA. To not scare people with high prices, better let people think something is “cheap”.
But with a 1:100 coin swap the high minting rate loses it initial reasoning.
Even if we assume that 50% of minted coins ends in staked wallets or masternodes.
And on top of that is 100% inflation a year not a good selling point for acrypto currency in general. Why this question always is asked by newbies to Divi that read the Whitepaper.
Inflation is a bad word because it is the devil of FIAT.
I’am now a days i’am liking a Minting rate/ROI/Inflation rate of:
50% the first 2 years
40% the next 2 years
30% next 2 years
25% forever. ( this can be changed later through masternode voting and most likely will be down the road)
But because of the 1:100 coin supply increase, the minting rate does not give sense anymore, and when we change that positive is the coin price will just be 50% higher. So We the investors do not lose money at all. The coins minted will just be worth 50% more.
But the end result is a product/Service that is much easier to sell to the 99% = mass adoption.
Lower inflation from 100% to 50% is a big selling point and we killed a primary argument used by many to why not to buy Divi.
and we assume around 50% of minted coins ends in staking wallets/masternodes.
Remember no investor loses money on this, the coins you mint will just be 50% more worth.
The easier The Divi Project is to sell to News papers, News Websties, Merchants, Companies, Hedge founds, Wall Street, and normal clueless people who get scared of the word “inflation”. The easier it is to sell to everybody the more succes = The bigger Adoption Divi gets, and the coin value goes up.
Have a nice day everybody and please sit and think about it for a moment before you answer you first thought on your mind.