Hi @edje.
You bring up an interesting explanation how deflation would work. I didn't even consider that for some block producers mining will be a losing game. That makes more sense now. I guess we will find out more in the future. It is an interesting project indeed and I can't complain for investing in it. If you say it can become one of the top 10 coins, then I may need to hodl them for longer time. :) Thank you.
Don't take my word for Koin to be sitting with the top coins at some point in time. It may happen.But it may not happen as well. After the relauch of Koin token, it may not even get any traction. We dont know. The crypto universe is quite unpredictable. Other projects and chains maybe favoured. In the end the value of a token is determined by its usage. Though Koinos chain has good cards to build an ecosystem, the development/crypto business market have to see the benefit in adopting the Koinos chain. Speed and cost to Ethereum, and Ethereum-likes may not be an issue anymore with the L2 solutions in and coming to the market, hence a reason less to adopt yet another none-Ethereum like chain. But that said, Koinos has good cards in my honest opinion. Therefore HODLing a bit of tokens maybe not be that bad... NOT FINANCIAL ADVISE, JUSTMY PERSONAL OPINION {have some gamble like part that plays a role in previous statement}
Finally, I got around to reading the Koinos Consensus Algorithm white paper. It holds this small paragraph about deflationary characteristics for Koinos. Though, in this paragraph, it is explained that under certain conditions, Koinos is deflationary. However, when such conditions are not met, Koinos can be inflationary.
In my own words and to my own understanding, Koinos will be deflationary when the demand for miners is increasing over time, ie increasingly more Koin will be spent/burned per the same amount of time to acquire the miners. With a set limit to the amount of Koin being printed per time period, the system ends up burning more Koin to Koin being printed. Hence Deflationary. I believe, to reach such a situation, the value of Koin needs to increase as well. Something that may happen intrinsically since those who want to produce blocks needs to buy Koin to pay for the Koinos Miners.
However, when said conditions are not met, Koin can become inflationary. And to be honest, Koinos must allow inflationary mode. Hints of the reasons are given in the white paper as well.
A question I had was: "What happens when the interest in mining is so low that the network will break, ie an increasingly lower amount of peeps willing to become block producers?" I believe the chain will have to rely on at least enough peeps that are willing to take the risk to recoup their pre-invested money to acquire the virtual miners, in an undefined time period, which is in kinda worst-case scenario's months to years and in most worst-case scenario infinite.
Though my question was more or less answered by the white paper, at least to my understanding, I will address this part in the Koinos community. Hopefully, sometime soon I'll have a Koinos Group answer instead of my own :)
The white paper also answered my question on the software nodes that are required to run the blockchain. It's not enough to hold the virtual miners to be rewarded as block producers, but one also needs to run the Koinos blockchain node software. At least, that is my takeaway from the white paper. Also this I'll confirm with them.
Not sure about what I'm now gonna state, but maybe SPK network is gonna use something similar regarding virtual miners. Wondering who come up with the idea first: SPK team or Koinos team. Or both independently. Anyways, doesn't matter too much. Koinos will be the first general-purpose blockchain adopting such a consensus algorithm, which is a huge plus imho. I just hope the crypto developers and dApp market, will think the same :)