Node compensation and runaway massive inflation

Recent node provider rewards have been around 100,000 ICP per month in total. As you write, that monthly amount in ICP will increase while the ICP price is dropping, but at the moment we’re talking about something like 0.2% inflation per year from those rewards, compared to some 8% inflation caused by voting rewards – which will decrease to about 5% in a few years. (Note that there are also deflationary measures like burning ICP for computation or ledger transfers, but admittedly they’re on a much lower scale for now.) I have not done any model computation for when the inflation for node provider rewards leads to a death spiral, but given the quick estimates above I think it is more of a theoretical problem than an actual threat.

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