8.59% INFLATION IS WAYYY TOO HIGH.
It depends on many factors. If demand was to increase one could view it as not enough. If one considers distribution the fact is many don't get much of that slice here, and if we were to see any surge in popular creators come to the platform alone it would quickly shrink everyone's slice of the pie. Just look at how folks got upset with Haijen and a few of the other whales, the many projects to flag and place some of the poll back so there would be higher scraps for the masses.
I think if people were to actually view this project as worthy to invest in (and not just milk for what they can quickly) there is already more than enough people here to soak up the inflation. But to many that are here, investing even a pittance into this project wasn't what brings them here.
The focus always seems to be on projects coming that would add value while soaking up the inflation and causing a shortage. That line of thinking seems backwards to me. If others with value/talent/business structures look and see the majority here don't think highly enough in t he project to invest, preferring to think of it as a free faucet, then they will not hold a high value of it themselves.
Thanks for a thought provoking article. The more discussion we have on values and why they exist the more may understand that in a decentralized system the burden is on all to seek an increase of value to the community.
Yes, it is the free faucet perspective that can be combatted by a systematic burn mechanism. Thinking of the inflation pool is being "enough" or not is simply the wrong way to think of it, in my view. Quite simply, the economic bandwidth of that inflation pool is determined more by token price than by inflation rate (by definition). Therefore, we need to counteract sell pressure with buy pressure, thus restoring some of the economic bandwidth.
Fixed inflation formulas in crypto projects have always annoyed me. It's a recipe for disaster because you basically have to have economic growth that matches the rate of inflation just to stay even (not quite, but ok for this discussion). Most real-world currencies have some means to influence inflation when they need too.
I guess it comes down to what you want to control; exchange value is a pretty important metric in crypto. Most central-bank based economies use inflation manipulation to control their economy and exchange value (with other fiats) is a concern but often not the primary concern. I think exchange value matters so much in crypto because most tokens quite simply do not have a vibrant internal value transfers.
I often think that the demand here could explode if there were more draws for those not here already. We have famous artists, famous bloggers, personalities etc. But none of them are seeing this for what it offers (so far). If just a few would see it, whether here already or not, they could by the love of their own fan bases create such a demand the current inflation rate wouldn't keep up.
Yeah, afaik, we can't control the inflation rate in this economy. So we need to come up with other monetary policy initiatives that counteract its inflationary nature. Otherwise, by definition, we get a reduced token price in the long run. And, really, nobody wants that.