Inflation in the Transformers network
January 23rd, 2024

Inflation is a key factor in the transformers network, and it is important to understand the terminology and concepts associated with it. This article aims to clarify and interpret the various terms related to inflation in the transformers ecosystem to reduce confusion and facilitate learning.

One of the key terms is the total supply of TTOS, which refers to the sum of the generated and planned inflation segments of the founding block. It is important to note that the total supply of TTOS cannot be estimated, as it is subject to trade inflation.

Another important term is the total circulation supply of TTOS, which refers to the amount of TTOS in circulation at any given time. It includes the initial block supply of 70,000,000 TTOS plus the TTOS generated through inflation, minus any TTOS destroyed by destructive events.

The inflation time cycle refers to the period during which inflation occurs in the transformers network. The inflation rate starts at its highest value and gradually decreases annually by 12% of the maximum initial inflation rate until it stabilizes at a long-term inflation value.

The inflation rate is the annual growth rate of TTOS based on the current total supply. It varies depending on the time and total stake and is adjusted to meet the liquidity requirements of TTOS. For every 1% increase in the total stake, the inflation rate reduces the initial inflation rate by 1.35% until it stabilizes in the long term.

The stake total amount refers to the total number of TTOS locks for all trustors in the transformers network, while the stake rate represents the proportion of the total stake of all verifiers in the current network to the current total supply.

Stake yield is the return earned during TTOS staking in the transformers network, which can be seen as the interest on a bank deposit. It is calculated annually, and the yield is constant at a certain percentage. For example, staking 1000 TTOS with a 20% annual yield will result in receiving 200 TTOS within one year.

The trustors in the network can obtain TTOS generated through staking a certain amount of TTOS. The stake yield can be calculated by dividing the current inflation rate by the current stake rate and multiplying it by 100%.

The economic change indicators in the transformers network are designed to ensure a reasonable balance between network construction and long-term sustainability. The initial setpoint for inflation is set at 7.7% to incentivize trustors and verifiers to participate in the network. Over time, the inflation rate gradually decreases to a long-term stable value of 2%.

The supply of transformers inflation rates changes over time, starting from the initial inflation rate and following a planned time cycle. It is important to note that the stake rate has an impact on the inflation rate, and the stake yield should not be affected by changes in the stake rate. The inflation rate is affected within the range of 35%-90% stake rate.

The economic indicators in the transformers network, including stake yield, are affected by factors such as inflation rate, stake rate, and verifier workload compliance rate. The stake yield can be calculated by dividing the inflation rate by the stake rate and multiplying it by the workload compliance rate.

By understanding and analyzing these economic indicators, transformers validators can better navigate the network and optimize their participation to receive the inflationary incentives generated in the network.

Overall, the interpretation and clarification of terminology related to inflation in the transformers network are crucial for trustors and verifiers to make informed decisions and effectively engage in the ecosystem.

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