Thread by @PaulsCryptoCall

1/ $MOVR Inflationary / Deflationary Supply

$MOVR has an annual inflation rate of 5% plus a deflationary model

Is it good or bad? IMO, it's neutral & I will explain why
 
So let’s break it down 🔽

$MOVR $KSM $GLMR $DOT $KILT $AIR

2/ $MOVR - What Is The Inflated Supply For?
 
➤ 1% - Incentivizing collators (security, as per $KSM design)
➤ 1.5% - Maintaining a parachain slot in perpetuity
➤ 2.5% - Staking & help power the collator selection process

$MOVR $KSM $GLMR $DOT

3/ $MOVR DEFLATION Mech
 
Moonriver has a deflationary model that counteracts a proportion of the Inflation
 
MOVR's transaction & smart contract executions fees are burned & allocated as per below
 
➤ 80% - acts as deflationary force
➤ 20% - go to $MOVR's on-chain treasury

5/ $MOVR Inflat./Deflation Verdict

IMO the inflation rate is irrelevant. If you are staking your $MOVR you are receiving a higher rewards % than that of the annual inflation rate

$MOVR is up 500% since late Aug, so don't worry if you think your coins are going to be devalued 5%

6/ Outside of your staking reward protection, the 5% still won't affect you. Let's not forget that $MOVR's deflationary mech that counteracts a proportion of the inflation

7/ The bit of Inflation remaining (if any) after the deflationary counteraction, is negligible. Look what we are getting:

A parachain with high scalability, shared security, cross-chain interoperability & on-chain governance with automatic on-chain implementation of updates

8/ Look at $DOT & $KSM; both are inflationary projects within the top 50 on CMC & killing it

And $MOVR will be up there soon too, with its robust & feature-rich architecture ready to knock a few projects off their throne 🔥

#Polkadot #Kusama #parachain #PoS