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The intent of the white paper is for the inflation rate to be a constant yearly percentage of the total supply. The current implementation is an approximation of that. This is a subject that often leads to confusion, therefore it's important to note a few things: Pecuniary incentives are pretty central in the security design decentralized ledgers The ...

Fundamentally a cycle is a set of block heights for which the baking en endorsement rights are determined by a single random seed. The reason to have many blocks in a cycle is that it lowers the incentive to try and manipulate the random seed (since most seeds will produce similar distributions on average). The reason not to have too many blocks in a cycle ...

Some exchanges distribute baking rewards to their holders (e.g. gate.io), so I believe this will help with that as users can receive staking rewards and be in a position to trade. Also, delegators (e.g. users who are just delegating their stake) are free to move their tez to exchanges and trade as they are not restricted by bond deposits.

Total maximum reward per year is a fixed number of XTZ therefore the effective amount of percentage inflation due to rewards is due to reduce over time. It can be updated through a protocol update voted upon by the tezos community. There is no way to tell when such a change will happen but it can be expected to be addressed within a year so as to keep up. ...

This is an empirical parameter but at high level it needs to be long enough to get enough to get statistical sample (for the randomization for the baking rights snapshot) and short enough to not know the expected rewards too much in advance. And again like every other parameter in Tezos it is subject to amendment if the community believes there is a strong ...

There is an equilibrium that is naturally found between baking and trading that corresponds to liquidity preference of individual holders. If the market has a high volatility then perhaps a higher fraction of people will stop baking/delegating to get their tokens on exchange. The price to pay for this immediate liquidity is of course dilution and as the ...

Answer from @murbard on reddit Short answer: yes, there is a way to vote for a maximum supply, make it binding and prevent alterations through subsequent votes. This is, by the way, a whole lot better than waxing poetic about cultural norms, one point for on chain governance! Long answer: overall, it's probably not a good idea to impose a maximum supply. ...

The tezos baking economics is not based on a target of 100% baking. In fact in your linked spreadsheet it assumes % Tezos Actively Staking/Baking 44% At the time of writing tzscan.io reports a staking ratio of 79%. Tezos doesn't require 100% baking to run. It actually works well with a much smaller percentage. In theory it could run with only one ...