Monero’s inflation schedule is based on a tail emission model. After reaching approximately 18.3 million coins in May 2022, Monero introduced a fixed block reward of 0.6 XMR per block (one block every 2 minutes), equivalent to 0.3 XMR per minute. This results in an annual inflation rate starting at about 1%, which decreases over time as the total supply grows, trending toward 0% in the long term. This mechanism ensures continuous miner incentives and network security while offsetting lost coins.
Discussion
yeah and ? why would you need to tx back to bitcoin because of that ? it's not the same as fiat inflation.
Don't compare monero to fiat. You're trying to compare it to Bitcoin which has a set deflation with a set scarcity.
I have yet to see a reason to transfer to monero in the first place.
There is no deflation in Bitcoin. You are using these terms incorrectly.
the *supply* of new bitcoin decreases, this is emission or issuance. This is not inflation or deflation as there is only ever 21m bitcoin.
Monero has a tail emission, which is not *inflation* as no single entity or person can inflate the monetary supplyat will and by anu amount they want. We know exactly how much will be emitted, just like bitcoin. The only difference is Bitcoin stops at a certain date, and everyone hopes fees will be enough to secure the network ( it won't because everyone just sits on their bitcoin and doesn't use it like monero users use monero, as cash).
I am perfectly justified in comparing it to fiat because the study of fiat and gold is where these terms come from.
Though it might not have happened yet, I suspect lost coins will outpace issuance at some point and cause deflation.
unlikely on a long enough time line. for what you have just said to be true every single coin ever would be lost and only new coins would exist.
in practice , someone would always be hodling or transacting in it
in other words, some large enough amount might be lost, example 2 million coins, each issuance eats away at that and over time replaced. During that time perhaps more coins are lost, lets say anoth 2 million, All that does is push equilibrium further ahead.
the mechanism is not intended to replace, in real time, lost coins, something no one can know or even attempt to quantify, but to both incentivise mining (network security and efficient tx processing) and stabilize scarcity pressure on price, incentivising use versus hodling like in BTC which is more likely to kill the network through negative behavior patterns and the current small block design)
I think you have misunderstood.
I said that at some in the future and number of Bitcoin lost per year will exceed the number of Bitcoin issued from the block rewards for that year.