Misrepresenting what I said is another form of personal attack. But whatever, I will go straight to the cold hard facts:
For this calculation I will use the approximated total supply of 4.3 billion listed in white paper:
“It is anticipated that 4.3 billion coins will be produced during the life of the network”
4.3 billion / 20 years is 215 million coins / year. Current supply is 450 million. What’s
450 + 215 million in percent inflation? 47.7%.
I did some more digging and while the safecoin whitepaper does not mention emission rate, the old paper from 2014 does mention something of interest:
“Unlike gold, which only increases at circa 1.5% per annum, the quantity of safecoin will initially burgeon. This is akin to the California gold rush, where the quantity of gold grew quickly with enthusiastic miners. In safecoin this is mirrored by the network building to the stage where it is protecting all of the world’s data. During that time the mining frequency will be exponentially decreasing.”
“Burgeon” for those unfamiliar means “begin to grow or increase rapidly; flourish.”
It’s established that the coins are to be mostly distributed by the 20 year mark, but let me quote from the paper:
With the proposed mining procedure (and assumptions) it is estimated that half the total volume will issued during the first 5 years, with 95% issued after 10 years
Now sadly this is even worse than I thought. I can do the math for you again:
(4.3 * 0.95) / 10 is 408 million per year on average. Note that current supply is 450 million, and we will be getting 408 million new coins a year on average for 10 years after launch.
There’s only estimates in the paper, however it’s clear to me that we are going to see the most heavy inflation in early stages, as this graph confirms:
An estimate is also made that shows this:
While 2% coin supply is only 86 million coins. 19% inflation is still pretty steep. But it gets worse, much worse:
To reward investors and developers involved during the early stages of this project, it is proposed that 30% of all safecoins will be injected into the network on day 1. Up to 10% will be available for purchase via the crowd sale, 5% for the existing MaidSafe investors, 5% for the SAFE core development team and 10% for the general developer pool.
Is these coins going to be available for sales? 5% + 5% ? That’s 100% inflation year 1, without counting the coins farmed. Even if only 5% (to devs) that’s still 50% inflation.
“half the total volume will issued during the first 5 years”
We’re talking 430 million coins per year. This is a massive equity dilution of crowdsale participants and very quickly so.
I rest my case