Potential Solution to Inflation Controversy

[common_spelling]

@BendyOne

High inflation is one of the biggest barriers to people joining Cosmos.

so atom inflation is bad because there will be more atom and that is a barrier to people joining cosmos because why? that is a barrier to people holding idle ATOM and encourages staking.

@BendyOne

People don’t like locking up there tokens to avoid being dilution. Most of us don’t recognise this because we are surrounded by people (like me) that are happy to stake in exchange for rewards.

if the above were true wouldnt we see demand for LSDs other than from CP spends and compounding LSDs?

@common_spelling

how is inflation bad? you stake and make your capital illiquid for 21 days and in return your liquid capital is returned to you through inflation. the higher, the faster you get made liquid and capable of putting capital back to use around the ecosystem.

what is the benefit of lower inflation when you are trying to get people to risk their capital and lock it on chain?

the underpants gnome business model and arbitrary parameter changes are unlikely to attract investors.

step 1) lower inflation
step 2) ???..???
step 3) Profit

South Park Underpants Gnomes Profit Plan