Tweet: https://twitter.com/thecryptogus/status/1522141867265114112
I’ve been wondering about how Ethereum could be sustainable in a deflationary environment (burning more ETH from gas fees than emission under ETH2). The mechanism is actually not just deflationary, but should adapt to the network economic conditions.
Bascially: ETH underpriced -> on-chain economic activity 📈 as it’s cheap -> ETH deflationary & price 📈-> ETH overpriced -> economic activity on-chain 📉 as it’s expensive -> ETH inflationary & price 📉-> ETH underpriced ... 🔁
More all the explanations in @domothy’s thread here 👉 https://twitter.com/domothy/status/1522056847234150400
If you want to find out ETH inflation / deflation breaking point and validators’ APR depending on how much they are, it’s here https://twitter.com/domothy/status/1512817907130114059