# kaal:claim:3125827-038

**Claim.** The sem token economy is inflationary at equilibrium, and the authors argue this is a feature: inflation improves security and discourages rent seeking by penalizing holders who do not use their tokens to evaluate posts.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- fees paid in at a constant or linearly growing rate
- new tokens minted with every fee and never destroyed

**Source quote.**

> The conclusion is that the economy is inflationary at equilibrium, which improves its security and discourages rent-seeking.

**From.** Craig Calcaterra, Wulf A. Kaal, *Secure Proof of Stake Protocol* (2018), A.2 Natural sem token inflation, page 33

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Secure Proof of Stake Protocol (2018). SSRN: https://ssrn.com/abstract=3125827

**Verify.** sha256 of source PDF `598d9bd95e4af7a0a35328677c6bfc069f69f2e32c30c720b3a0be98a23a40cb` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202018%20-%20Secure%20Proof%20of%20Stake%20Protocol.pdf

**Topics.** tokenomics, consensus-and-security, economics

**Keywords.** token-inflation, rent-seeking, sem-tokens, security, token-valuation

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3125822-026

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.