14 votes
Accepted

Inflation rate and economic incentives

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 ...
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  • 4,409
12 votes
Accepted

What determines the length of a cycle in Tezos?

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 ...
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  • 4,409
3 votes

If all tezos are baking, how would markets be created then?

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....
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3 votes

Inflation rate and economic incentives

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 ...
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  • 6,006
2 votes

What determines the length of a cycle in Tezos?

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 ...
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  • 6,006
2 votes

If all tezos are baking, how would markets be created then?

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 ...
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  • 6,006
2 votes

Maximum supply in tezos

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 ...
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  • 6,006
1 vote

If all tezos are baking, how would markets be created then?

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 ...
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