Long-Term Supply Growth Rate

This section outlines THAT’s issuance model, detailing the annual supply growth rate and its implications for stability and wealth distribution within the ecosystem.

The THAT currency follows a carefully structured issuance model designed to ensure sustainable and equitable growth. This list provides an overview of the long-term supply growth rate of THAT, detailing how it changes over time within the ecosystem.

Approximate Supply Growth Rate:

• TGE: 20%

• Year 1: 21.66%

• Year 2: 17.81%

• Year 3: 15.12%

• Year 4: 13.13%

• Year 5: 11.61%

• Year 6: 10.40%

• Year 7: 9.42%

• Year 8: 8.61%

• Year 9: 7.93%

• Year 10: 7.34% (end of company distribution)

• Year 11+: < 1.32%

Explanation

The THAT network’s linear currency issuance over 10 years for the organisation and indefinitely for validators aims to ensure a steady and predictable supply growth rate. Unlike other models that can lead to rapid inflation or deflation, this approach offers stability and long-term sustainability.

Mitigating Wealth Concentration

The permanent linear supply growth model addresses concerns about wealth concentration, which is commonly seen in other cryptocurrencies like Bitcoin. By maintaining a steady issuance rate, it ensures that new entrants to the ecosystem have fair opportunities to acquire currency units, promoting a more inclusive economic model.

Equilibrium Theory

As coins are lost over time due to various factors (e.g., loss of private keys, user errors), the total currency supply in circulation will eventually stabilise. This equilibrium is predicted to occur when the annual issuance rate matches the annual loss rate. For instance, with a 1% loss rate, equilibrium would be achieved when the supply reaches 5X (approximately 34 years), at which point the amount distributed through block rewards and the amount lost each year would balance out.

Conclusion

The THAT currency’s structured issuance model and carefully managed growth rate ensure a stable and sustainable economic environment for all participants. By addressing potential wealth concentration and planning for long-term equilibrium, the THAT network is designed to remain robust and inclusive for the long-term.