Hive may need to increase the inflation rate down the road if this just keeps locking it up. Or are there ways for it to come back into the market again, say by funding new projects or paying rewards on Defi LPs?
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Hive is set to decrease in inflation every block until it reaches just under 1% yearly inflation. Keep in mind Hive is highly divisible and RCs are shared by usage.
Excuse my ignorance/curiosity: how does Hive's divisibility help with inflation?
The question was pertaining to increasing inflation because if there is a lot of Hive locked in the SIP, then we could face a liquidity crisis.
The fact is, with 3 decimal places, we really have 3X as much Hive potentially. Of course, the price would have to increase substantially to even out.
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3 decimal places is 1000x, not 3x. it's just a change in significant digits, not a quantitative change though. still if it does permanently burn a lot of stake, it could create massive pressure for the price to equilibrate to the new effective supply...
LOL yes you are correct. Thanks for that.
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Based upon the Light Paper, payouts from the SIP take the form of BROCA and SPEAK. That is how the infrastructure providers and other participants are rewarded.
Keep in mind that this is the base layer SIP. Any community can have its own SIP consisting of BROCA and their native token. Hence we have a gateway into whatever projects the community (or any community) wants to fund.
That is how I understand it at least.
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Me too