📈Currency Inflation

Allow your community to distribute currency in a fun and fair way that generates activity and good will between members. Our inflation system aligns individual and group incentives, ultimately letting reputation evolve organically and dynamically giving you a metric to measure each member in your community.

How does inflation Work?

By default inflation is not enabled in the realm, its up to an admin to set the rate of inflation. Once enabled, currency that should be minted is periodically entered into a lottery. Citizens (anyone with a currency balance) have a chance to win the ability to mint a coin. The winner expresses their desire to mint by using an emoji reaction (default 👍) to an authors message in Discord. This automatically mints 1 unit of currency which gets split between the giver and receiver, earning them half a unit of currency each.

Who is chosen to mint?

Every time there is currency available to mint, the ability is granted through a lottery system. The lottery is weighted by each members relative currency balances. The higher ones holdings ( relative to everyone else) the higher ones chances of being chosen to mint the currency. As long as one is holding any currency, one has a chance to win.

Why does inflation work this way?

The idea behind this form of inflation is to allow a fair, dynamic and unbiased way to distribute the realms currency. With inflation, full distribution of currency is handled by the community based on their preferences. Members that have earned more are assumed to have higher weighted judgement, and therefore earn and distribute more often.

Why is the coin split?

When someone mints a unit of currency to someone else, they are expressing a preference that someone deserves more influence in the realm. With inflation, that unit is split to reward both parties.

Imagine if the currency was not split. There would be no reason for anyone to mint, as it would require them being economically altruistic, since they would be elevating someones relative influence above their own. By splitting the reward not only are you rewarding the act of expressing preference through minting, but the relative relationship between the giver and receiver stays roughly the same.

Why use inflation?

1. Distributing currency among a large community is time consuming for an individual or small group, save time by delegating this process amongst all your citizens.

2. Realms administrators may not see all important contributions, this allows the wisdom of the crowd to participate in recognizing these contributors that might be otherwise missed.

3. Giving the community the ability to "mint" to others makes it more fun and engaging and helps build relationships and ensure citizen retention.

4. Ensure you never miss important contributions because inflation runs all the time, until explicitly stopped by an admin.

5. Inflation promote interaction, feedback and value creation between community members because "minting" is a subjective and interpersonal process.