after burning my eyes in trading of BITCOIN and ADA i moved to reading through the night supply mechanics this morning and honestly the framing here is one people get wrong constantly 😂
most people hear fixed supply and assume deflationary. night has a fixed total supply of 24 billion - no new tokens ever minted after genesis. but the supply model is actually disinflationary, not deflationary
thats a meaningful distinction and its worth sitting with.
what this gets right:
the circulating supply of night expands over time as block rewards flow from the Reserve into circulation. each block a constant percentage of remaining Reserve tokens is distributed. the rate of new tokens entering circulation is highest early and decelerates with every block as the Reserve shrinks. inflation exists at launch. it just slows continuously until the Reserve is exhausted and circulating supply finally matches total supply permanently.
what keeps nagging me:
disinflationary models front-load token issuance. early block producers and early participants capture a disproportionately large share of total rewards simply by being present when the distribution rate is highest. the math is correct and the design is honest about it
but the front-loading pattern means the network starts with its highest inflation rate and works down - which is exactly when adoption and demand for the token is typically at its lowest.
honestly dont know if a disinflationary Reserve distribution is the right issuance model that rewards early network security while naturally tapering toward scarcity or a structure that concentrates the largest rewards in the period when the fewest people are watching?? 🤔
#night @MidnightNetwork $NIGHT
