I want to talk about the Flow minted every epoch, Inflation, usage of the network,…. in Depth Currently(note: Flow is awsome, Relationships, investment funds, technology,… But there is some problem in tokenomics)
Calculation Mint reward every Epoch in PayRewards Function in Flow Staking Contract Flow View Source
mintedRewards = totalRewards - feeBalance
totalRewards: epochTokenPayout (total amount of tokens that are paid as rewards every epoch)
feeBalance: Number of Flow in gas fee
mintedReward: Mint Flow for Staking/ Delegating Reward
This is the number of Total rewards according to Flow Staking History: Flow Blockchain Staking Stats
5/5 (1.271.622 Flow Reward)
5/12 (1.272.815 Flow Reward)
5/19 (1.274.010 Flow Reward)
5/26 (1.275.206 Flow Reward)
This number is Flow Minted Every Epoch
5/4 (1.270.422 Flow Minted): Transaction ID: 0b6a8f6b23949659338b7f68ee19aa4342ec104dbcf4148f7341e77cb192d0d7
5/11 (1.271.610 Flow Minted): Transaction ID: 34e207b07960c467213136b1d3b7e6a00e404b2ff312d2d2e764b3ec57e4e4fe
5/18 (1.272.804 Flow Minted): Transaction ID: 9a0aaa02902cf71da5f62d5a19be2fc65e1987a4c265da8167ef56deac948d18
5/25 (1.274.002 Flow Minted): Transaction ID: 327a0a26aa75107189da320655fc9978f96109917c1c3ade571dbada1d759adf
Relative Number of transactions per Week and Gas Fee (0.00002 Flow/Transaction) Convert to Flow
(I know flow fee can increase due to network traffic, but i want to use fix number to estimate )
Week 18: 3.538.811 Transaction = 3.538.811 * 0.00002 = 70.77 Flow
Week 19: 3.128.840 Transaction = 62.57 Flow
Week 20: 3.719.016 Transaction = 74 Flow
Week 21: 4.728.923 Transaction = 94 Flow
Oke, so we can see just 70-100 Flow is used for gas fee and more than 1M Flow Minted Every Week.
As the usage of the network increases, less new tokens will be minted every epoch because fees decrease newly minted tokens for reward payouts.
That’s True But how many transactions reach the Breakeven point?
0.00002 * 50.000.000.000 Transaction = 1000000 Flow
Are 50.000.000.000 Transactions per week is Possible?
And Currently, I don’t see any Flow Demand here. The NFT Projects don’t have to Lock any Token, NFT can purchase via credit, but Did Dapper or other Company Buy Back Flow tokens or Lock/ Burn Tokens?
Ok, the Inflation is around 4-5%, But what is the Demand for Buying Flow tokens?