In DeVault there are 3 sources of inflation
- Coins generated by Mining
- Cold Rewards for coin holders rewarded based on holding for 1 month
- Coins generated each Superblock for Team Budget items
The coins generated by Mining will have an unsual emission curve by cryptocurrency standards. While most coins decrease coin rewards over time and often in huge steps, we believe that this is not the best method.
One reason, is that it heavily rewards the earliest buyers of the coin, especially for unestablished ones where there would not be a lot of demand initially, making it easy for a small amount of people to buy up a large part of the supply cheaply.
To avoid this, we increase the mining block rewards over time from day 1 upto about 1/2 a year out. This was to give time to get the word out to users and miners so they can participate before the rewards start declining. After a 1/2 year, the block reward will be twice the initial reward and start declining gradually.
We use a math expresssion (see below) to calculate the rewards so that the change gradually and without any large discontinuities
// Pseudo-code
// PeakHeight is 1/2 years out
const int nPeakH = nPeakHeight/3;
int64_t peak = 500 + int((500*nPeakH)/nBlocksPerYear);
if (nHeight <= nPeakH) {
nReward = 500 + int((1000 * nHeight) / (nPeakHeight + nHeight));
} else {
nReward = nPeakH*peak/nHeight;
}
}
For inflation purposes, we are assuming that 75% of all coins will generate Cold Rewards
Below is the graph for DeVault supply for the first 10 years with the above assumptions
Inflation rate for DeVault for the first 10 years with the above assumptions
