Inflation could make the rich richer?

phasnox

Hello guys!

I have asked this in reddit too. I wan to invest long term in XLM. However I have a couple of concerns regarding how the inflation pool is distributed.

For those who don't know, Stellar has a built-in inflation of 1%/year. This one percent is distributed weekly along with what is collected in transaction fees. This amount goes to the account that has more than 0.05% of the votes.

To vote you have to hold lumnes, the more lumens you have, the more votes. So if you have 120 lumnes, you have 120 votes.

Now, I like this approach better than ripple for example, that has total control of the distribution. However, I think it is prone to abuse by whales that would always vote for themselves, and thus always getting a share of what's in the pool, thus effectively making the rich richer.

Is this a valid concern? Has the developers or the community discuss about this? You know if there is any plan to mitigate this risk?

Thank you!

b3no

No, this is not a valid concern. 1% per year will not make anyone rich. The price moves 1% every minute. [quote="phasnox, post:1, topic:800"] This amount goes to the account that has more than 0.05% of the votes. [/quote] This statement is false. You need to have 0.05% of votes to qualify for the inflation. The inflation is equally distributed and doesn't go to one account.

If you don't have the required amount to qualify for the inflation join a pool and you will receive your 1% per year.

Nobody has an advantage. The distribution is fair.

phasnox

Yehp gotcha thanks! Sorry yes, it is distributed to all of the accounts that get more than 0.05% of the votes.

Yes 1% is negligible. But the pool does not only consist in that 1% growth, but also in the amount collected by transaction fees.

I really don't care much about making a quick small buck by joining an inflation pool. I'm concerned more about the future of the platform. I see this could potentially become a problem as the network use increases.

Is there an official statement of the matter?

jamie

@"brino53"#66 might be able to provide more info.

BrianGale

We don't see this as a problem. Inflation is minimal and no worse than other cryptos.

phasnox

Thank you kingslayer, I have talked this out in the slack channel. Yes inflation, and what is collected through transaction fees is negligible.

Rudhian

I do not can to help with this problem

artadiwan

I think dev makes a balance between price and volume of lumens. We can see the total lumens that have been distributed very much, but the price remains stable. And this is dev aim. But I'm not sure it's true or not. But I think the future lumens will continue well. And suitable for long-term investment

tyrantz1

halp how to do setup inflation thingy