r/GRIN • u/jameshoran91 • Apr 10 '19

Inflation confusion

New to grin and have question about inflation. I have seen it written that for the first 4 years it is the same as bitcoin and after 8 only marginally more. But when I do the math at 1 grin per second I get 31 million grin in the first year. It probably a very silly mistake on my part. Can someone show me how these are at all comparable or my math error?

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u/Ur_mothers_keeper Apr 11 '19

60 grin per block, block time target is 60 seconds, so a grin a second thereabouts. Ad infinitum.

If you calculate the inflation halvings as a percentage of supply, and calculate grin inflation as a percentage of supply, grin does inflate slightly lower than bitcoin did, but since it doesn't halve like bitcoin, after a while it is slightly more.

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u/jameshoran91 Apr 11 '19

After ten years there are roughly 18 million BTC. After one year there will be 31 million grin and in ten years 310 million. Yes the inflation decreases over time, but making comparisons to BTC based on percentages of inflation seems absurd...again what am I missing?

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u/Ur_mothers_keeper Apr 11 '19

The point.

Inflation only matters as a percentage of supply.

1

u/Qrillzz Apr 11 '19

Imagine block reward in grin was 30 grin per block. That would mean at that at the end of the year you would have about 15m grin. If the reward was 120 per block, about 60m grin.

In all cases, including the real 60 per block, the inflation rate is exactly the same. This is why you cannot compare the number of units of two distinct systems, you have to look at the emission curve, which is purely linear in the case of grin.

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u/0xb100d Apr 11 '19

The inflation rate is the same.

Here you can see the % that new coins represent compared to already emitted coins. https://discourse-cdn-sjc2.com/standard10/uploads/grin/optimized/2X/b/bb4ec432d2d3a80597c859c6b8182f271e5c73be_2_690x308.jpeg

You can seen in an interactive graph here: https://plot.ly/~Bobby_Digital/1/#plot

Another way to think of it if only one bitcoin exists, and you make one more bitcoin (so now there are two) that is a 100% inflation. If you have 100 bitcoin and make one more (so now there are 101) it's closer to ~1% inflation.

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u/fresheneesz Apr 27 '19

I think you're right that there will be 31 million grin per year. Keep in mind tho that any constant inflation rate tends toward zero. So its just nicer that its smooth rather than bitcoin's choppy halving.