Staking and monetary policy update

staking
incentives
profits

#1

Thanks to @ADA_Fan and this comment: List of Cardano / ADA staking pools. I’m just moving it into a separate topic in case people want to discuss it.

There are new updated staking and monetary policy info:

I reckon it’s a summary of the latest vid from Lars Brunjes.


One of the presented points is that supply inflation will be at a fixed rate of the unissued reserve decrease and NOT at a fixed rate of the inflation itself. So basically - decreasing inflation, like in bitcoin.

As an arbitrary example of exponential decrease page proposes a possible value of 5% yearly decrease of the reserve. At this rate actual inflation would be 2.2581% for the first year, 2.0978% for the second one, and 1.2195% in the year 10.

You can find 500 year calculation here: https://pastebin.com/raw/a7x2Gu2g

Do not forget that 5% decrease is not confirmed yet. And will not be set in stone if implemented. Community voting might chose to change this number.

Btw, such inflation would give about 443.937 ADA fixed reward for a block in the first year (broadly speaking, pool would receive around 75-80% of this amount for creating an empty block). For the year two it’s gonna be 421.74 ADA. Year 5 - 361.58 ADA. Year 10 - 279.791 ADA per block. Which gives a very smooth and nice decrease.


P.S. Just FYI :slight_smile: At this rate:

1. Last whole ADA per block would be in year 119

Year: 119
Reserve: 31,277,861.00
Issued (in a year): 1,646,203.00
Fixed reward per block: 1.044 ADA

2. Last whole ADA per year would be issued in 398

Year: 398
Reserve: 19.06 ADA
Issued (in a year): 1.0032 ADA
Total supply ADA: 44,999,999,980.94

But of course those calculations might also change, if, for example, inflation rate is changed, or block time is changed, etc. Also there’s still not much info on how sharding would affect incentives.


List of Cardano / ADA staking pools
#2

Thanks for sharing your thoughts. I doubt we would go beyond 50 years with the last ADA distribution. At some point the may just distribute the remaining balance. But again we might have an entirely different system by then.


#3

Many thanks for the very interesting scenarios put forward.