Understand Hive Blockchain Inflation Calculation

The inflation rate of the Hive blockchain is calculated using a formula that takes into account several factors, including the current supply of Hive tokens, the rate of new token issuance, and the total supply cap.

The formula for calculating the inflation rate is as follows:

Inflation Rate = (New Hive Issued / (Total Hive Supply + New Hive Issued)) * 100

Where:

New Hive Issued = the total number of new Hive tokens issued during the current period (usually a year)
Total Hive Supply = the total number of Hive tokens in circulation at the start of the current period

The inflation rate is expressed as a percentage, and it represents the rate at which the total supply of Hive tokens is increasing.

The rate of new token issuance is determined by the Hive community through a process known as the witness consensus. Witnesses are elected by Hive stakeholders, and they are responsible for producing new blocks on the blockchain. As part of this process, witnesses receive a portion of the new Hive tokens that are issued, which provides an incentive for them to maintain the network and ensure its security.

The total supply cap for Hive is set at 1 billion tokens, which means that the rate of inflation will decrease over time as the total supply approaches this limit.

The current inflation rate of the Hive blockchain can be found on various Hive block explorers or cryptocurrency data websites.

Posted using Splintertalk