# Token inflation

`kaal:entity:token-inflation`

**Status.** derived

This node is assembled mechanically from the 4 claims that carry the concept tag `token-inflation`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

4 claims across 2 works, 2018 to 2018.

**2018**

- [3125827-022](https://wulfkaal.github.io/claims/3125827-022) [mechanism/argued] -- Experts who fail to participate in the validation pool are punished stably rather than abruptly: because the system is inflationary and they gain none of the newly minted sem tokens, their holdings become a smaller percentage of the total and earn a smaller share of future reputation weighted salaries.
  > will be stably punished because the system is inflationary: if they don't participate they will not gain any portion of the newly minted sem tokens, so their own unused sem token holdings will represent a smaller percentage of the total
  Craig Calcaterra, Wulf A. Kaal, Secure Proof of Stake Protocol (2018). SSRN: https://ssrn.com/abstract=3125827
- [3125827-038](https://wulfkaal.github.io/claims/3125827-038) [empirical/evidenced] -- 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.
  > The conclusion is that the economy is inflationary at equilibrium, which improves its security and discourages rent-seeking.
  Craig Calcaterra, Wulf A. Kaal, Secure Proof of Stake Protocol (2018). SSRN: https://ssrn.com/abstract=3125827
- [3125827-039](https://wulfkaal.github.io/claims/3125827-039) [failure/argued] *(failure mode)* -- Because earlier sem tokens represent a larger percentage of the total and therefore pay out more, later experts have less motivation to join when fees are at a steady state; the authors propose that the bench may need to change the fee to token exchange rate to recruit new members.
  > This may mean later experts have less motivation to join if fees paid into the system are at a steady state. To combat this, the bench may choose to change the exchange rate between fees and sem tokens to encourage new recruits.
  Craig Calcaterra, Wulf A. Kaal, Secure Proof of Stake Protocol (2018). SSRN: https://ssrn.com/abstract=3125827
- [3266953-027](https://wulfkaal.github.io/claims/3266953-027) [mechanism/argued] -- Anchor tokens are highly inflationary because new ones are minted in proportion to the SEM denominated transaction fees collected in each block, so a member must keep participating simply to maintain their relative power.
  > New Anchor tokens are created in proportion to the number of SEM denominated transaction fees collected by the system in each block. Therefore, Anchor tokens are highly inflationary. To maintain his relative power, Bob must continue to participate.
  Craig Calcaterra, Wulf A. Kaal, Gopinath Sivalingam, Reputation Protocol for the Internet of Trust - Conceptual Whitepaper (2018). SSRN: https://ssrn.com/abstract=3266953

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/token-inflation.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.