Inflation decreasing - Gavin Wood vision

Why should we experiment with inflation when Gavin Wood himself came up with a great idea:

https://www.youtube.com/watch?v=O3kRAVBTkfs — 1:31:40 timing

 

The point is create a maximum supply value, such as Pi number (3.14159) so inflation will be 10% of the difference between the maximum supply and the current supply. In other words, inflation will be 10% of the remaining supply.

Example:
Now we have around 1 500 000 000 $DOT, if we set maximum supply value on 3 141 590 000 its mean with inflation rate 10% our inflation will be:

inflation in first year:
%10 from (3 141 590 000 - 1 500 000 000) = %10 from (1 641 590 000) = 164 159 000 $dot
supply after first year:
1 500 000 000 + 164 159 000 = 1 664 159 000 $dot

inflation in second year:
%10 from (3 141 590 000 - 1 664 159 000) = %10 from (1 477 431 000) = 147 743 100 $dot
supply after second year:
1 664 159 000 + 147 743 100 = 1 811 902 100 $dot

And so on. The point is that we will never reach maximum supply, or rather, it will take decades. The same with $btc. I hope everyone understood the formula proposed by @gavofyork on interwiev with @TheKusamarian .

Although I hope I haven't made any mistakes, there is still such a chance, so I advise everyone to watch a part of interview.

I believe that of those currently offered, this model has a number of advantages:

1. We get a extrimely concrete and clear path for the next 5-10 years and can close the issue related to inflation. WFC #1139 which was recently approved does not have such an advantage, it only indicates the path for the next year, with the wish to reduce inflation in the future - "8% total inflation in the first year, then gradually decreasing". This is how it sounds. Discussions of inflation have always slowed down the community and generated a lot of controversy, unfortunatelly there is no garanty in a year we will not have another energy-consuming vote on further decreasing inflation. And it is not a fact that we will be able to come to a consensus. This path is foggy for me, with all due respect to the author of this proposal. Also WFC #1139 caused panic among some investors due to the sudden change in #Polkadot's economic model. According to WFC #1139, there is again no garanty that we we won't have to intervene in the economic model every year. Surely, large and especially conservative $DOT holders will not be happy about this. In turn, the new proposal (WFC #1216) aims to follow a concrete path that will not need to be changed year after year due to changing market conditions.
2. Only such a path looks complete. I mean it is self-sufficient and does not need constant updates and guessing what to do next year after year. @gavofyork suggestion looks like a plan, not just a wish. Let's vote for a plan, this is strategically correct. WFC #1139 can lead us into a fog.
3. Think about the trust we will gain from current and new potential investors who will finally realize that our supply will never even multiply by 2. Admit it, everyone is now horrified by the thought that with the current inflation our supply is multiplied by 2 every 7 years. Now this will not happen anywhere near. No doubts when coinmarketcap and coingecko users see the "max supply" bar appear next to Polkadot they will be pleasantly excited. This is a huge boost. Others L0 chains will now have to catch up with us in this race. Since the best decision related to inflation will be ours. And again, new users will prefer to invest in the project where they are confident that their portfolio will not depreciate every 7 years by 2.

 

The diferences between WFC by Jonas and WFC #1216 not sensitive. I would even say @gavofyork proposal is even better: because in the first year, no one will feel the changes, this will allow you to get used to smooth changes. And in the further years, inflation will not be much different, and still be a little less in WFC #1216, which is also an advantage. Since we no longer have parachain auctions. And of course, all the advantages that I wrote about above.

 

— MY ADDITION

All I want to change in Gavin's proposal is the final maximum supply. I want to change it from the proposed number Pi ( 3.14159) to a smaller one - Euler's number ( 2.71828 ). Gavin said it could be any beautiful or interesting number, so I picked Euler's number, also because Polkadot community expresses interest in a slightly greater decreasing inflation. There is 13.47% of difference, which is very insignificant, very conservative.

 

— VOTING FOR

So, by voting for this proposal you are voting for the inflation reduction model proposed by the Founder of Polkadot - Gavin Wood. All the details in the video (don't be lazy, spend 9 minutes of your life watching it), plus my idea to change the number Pi to Euler's number.

 

— REVERSIBILITY OF YOUR VOICE IN THE FUTURE

If this WFC will be successfully passed, it will not mean immediate changes on chain. This vote only represents the opinion and desire of the community. If approved, the next WFC will compete in popularity with WFC "#1139 Polkadot's Economics Parameters: Proposal 3 (8% total inflation in the first year, then gradually decreasing)"

If this WFC will be successfully passed, and then if this WFC will be more popular in competition with WFC #1139 next steps will be inviting Polkadot Founder — Gavin Wood to create a final referendum with changes in the chain.

 

— SOME FACTS AND MATHEMATICS

number Pi — 3.14159

Euler's number — 2.71828

Euler's number (e) is an irrational mathematical constant approximately equal to 2.71828. It plays a key role in calculus, especially in the study of exponential growth and decay, and is the base of the natural logarithm. The number e appears in many areas of mathematics, including complex analysis, probability theory, and differential equations.

 

What is remarkable is that if we do the calculations, we get approximately the same inflation rate with WFC #1139, in the same time gaining the prospect of optimism from current and future investors due to maximum supply. We will really calm investors down when they see that our supply will never even multiply by 2. Because now I notice a lot of talk like every 7 years our supply doubles, this really sounds scary. And also in this WFC we really do get light at the end of the tunnel, there will be no need to plunge every year into the fog of disputes about the constant reduction of inflation.