Reddit post on the destruction of .01 PPC per transaction

Anyone care to weigh in?

To say that destroying 0.01 PPC is “wasteful” is quite an outlandish idea. It’s like saying that we shouldn’t count too high or we might waste our numbers. I am concerned that the 0.01 could overly discourage transactions, though. I’d be interested to hear if there is any future plan to lower this amount.

This reddit is pretty much wrong on all points, and that’s coming from someone who’d very much like to see the static 0.01/kb fee system completely revamped.

There’s no waste from destroying the fee, it doesn’t waste any energy or computing resources. Giving it to miners might actually increase the incentive to mine and therefore increase the resources consumed by the peercoin network.

And he has the effect that a shrinking money supply has on prices backwards. He thinks reducing the money supply should push prices upwards which is blatantly backwards. I think the whole worry about inflation/deflation in peercoin is completely overrated anyway. You get a small reward from using your coins for POS mining, but this is available to anyone with coins and is proportional to the number of coins they use. It’s not making the rich richer or the poor poorer. Destroying the fee doesn’t save us all from inflation or anything, the only difference is that destroying the fee delivers a microscopic subsidy to all coin holders whereas giving the fee to a miner delivers a larger, but still tiny, subsidy to said miner.

completely misses the creation of 0.01 by minting