TFSC inflation is a mechanism that controls the supply of TFSC tokens in the network. The inflation rate is determined by a number of factors, including the time period, the total stake, and the workload compliance rate of validators.
The initial inflation rate is 7.7%. This rate will decrease by 12% each year until it reaches a long-term stable rate of 2%. The inflation rate also decreases by 1.35% for every 1% increase in the total stake.
The total stake is the total amount of TFSC tokens that are locked up by validators. The higher the total stake, the lower the inflation rate. This is because a higher total stake means that there is less need for inflation to stimulate the network.
The workload compliance rate is the percentage of time that a validator is online and processing transactions. Validators with a higher workload compliance rate receive a higher inflation reward.
The stake yield is the amount of TFSC tokens that a validator earns per year for staking their tokens. The stake yield is calculated by multiplying the inflation rate by the stake rate and the workload compliance rate.
The following chart shows the change in the inflation rate over time for different stake rates:
inflation rate chartOpens in a new window
https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
As you can see, the inflation rate decreases as the stake rate increases. This is because a higher stake rate means that there is less need for inflation to stimulate the network.
The following chart shows the change in the stake yield over time for different stake rates and workload compliance rates:
stake yield chartOpens in a new window
www.tfsc.io
https://www.tfsc.com/doc/learn/ecology/inflation
As you can see, the stake yield increases as the stake rate and workload compliance rate increase. This is because a higher stake rate and workload compliance rate means that the validator earns a higher inflation reward.
The inflation mechanism in TFSC is designed to ensure that the supply of TFSC tokens is properly managed and that validators are rewarded for their participation in the network.
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