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Tokenomics: preventing inflation for awardance strategies that involve periodic minting

Etherum Reddit

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This is a complex topic, but I'd like to see if I can get pointed in the right direction.

I have a pretty typical scenario of wanting to encourage some behavior, and to do so, new tokens are minted whenever the behavior happens. This is similar to typical blockchain mining protocols (e.g. a node solves the challenge, and is rewarded 0.25 BTC).

What I am struggling with is: how to maintain this kind of awardance strategy without greatly inflating the supply overtime.

I believe the best way to counter-act this kind of inflation would be to exponentially (or logorithmically) decrease the mint reward overtime. At least then, the inflation rate is always going down which would be acceptable.

But my use-case has one even more particular property that makes this exceeding tricky: the rewardable amount is non-static and can be arbitrary. For example, a node solving a challenge may get 0.25 BTC, and the next solver may get 2.75 BTC, and the next may get 0.10 BTC.

Is there any counter-inflation strategy for periodic, dynamic rewards like this?

Totally open discussion, please post your thoughts / links. Thank you!


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