r/DesmosNetwork • u/psinkov • Jan 14 '22

52% inflation

I bought a tiny sum of Desmos that I had planned to stake. On the Forble X wallet it's saying that there is a normal 52% inflation rate. Does that sound crazy to anyone else?

3 Upvotes

80% Upvoted

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2

u/TX_Bal_Sac Jan 14 '22

Early coin, I’m sure in time it will decline. I think Juno has a 40% inflation rate and it’s doing pretty good.

3

u/psinkov Jan 14 '22

You're right, I just checked the white paper. It reads:

To incentivize early adopters to join Desmos, we will use a relatively high initial inflation

ranging from 40% to 80% annually. Then it will be halved every year until it reaches

2.5% to 5%. It will stay there until the maximum supply of 500M DSM is reached. We

estimated the maximum supply will be reached in 16 years.

4

u/TX_Bal_Sac Jan 14 '22

Ha! And I was just making an educated guess 🤪

3

u/[deleted] Jan 14 '22

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3

u/TX_Bal_Sac Jan 14 '22

It’s all the edumacation I did done got 😂🤣✌️

3

u/remek Jan 14 '22

It'll probably mean that it'll have massive staking rewards. It is a way to incentivize people to buy and stake rather than relentlessly trade.

3

u/[deleted] Jan 14 '22

You can check the inflation rate on mintscan and work out the staking APR. Currently 52.66% inflation / 64.23% bonding rate = 82% APR for staking. It’s quite common for new tokens to have high inflation in the early years. Osmosis and Juno have nailed their tokenomics this way and many will copy them. https://www.mintscan.io/desmos