hi, huge monero fan here.
Monero's tail emission
I'd like to repost xulescu's summary on tail emission here (from Bitcointalk's Monero Economy)
Fattest tail to thinnest tail
- constant inflation block reward nonmonotonic: block reward decreases exponentially until tail starts, then increases exponentially total emission unbounded, with an inflection point: concave ("doesn't hold water") until tail starts, then convex ("holds water")
- inflation converges to zero from here below block reward: constant after tail starts total emission unbounded, linear after tail starts
- inflation converges to zero block reward: inverse linear decay, converges to zero total emission unbounded, logarithmic after tail starts
- inflation converges to zero block reward: inverse quadratic/cubic/... decay, converges to zero total emission finite from here below
- inflation converges to zero block reward: exponential decay, converges to zero total emission finite
I like constant tail emission(alternative 2), it will result in the amount available converging to a fixed value due to lost coins.
x'=C-sX where a is the how large part of the coins that get lost each year.
x=C/s-C/s*exp(-st).
One interesting alternative is Reward=a(b-X)³ where b=(2^64-1)/10^10, a=10^-25
This has the solution X=b-b/(2ab²N+1)^0.5 where N=blocknumber, this is suitable for a blocktime of 45 seconds. Reward=ab³/(2ab²N+1)^1.5
Alternative 1 and 5 obviously sucks where alternative 1 is similar to the current monetary system.