#Peercoin is Extremely Inflationary
Myth: New coins are created all the time, it will be incredibly inflationary.
Busting the myth
The money supply curve is totally dependent on user adoption. Currently, the network is producing less coins each month. It will likely take hundreds of years to reach 1 billion peercoins, if ever.
The change of money supply is determined by:
- Proof-of-Work difficulty level: In Peercoin, the miners only purpose is to increase the supply of coins.
- Proof-of-Stake: Minting nodes build blocks and as a reward they get coins. This increases supply at a rate up to 1% per year.
- Number of transactions: Every time there is a transaction, the coins in the fee is destroyed. This decreases supply.
Learn More
Learn more about the details here:
Official source code repository:
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