Conversation

2) It depends! Well, really, it depends on the market. Sometimes everything goes up. Sometimes everything goes down.

3) But another important point: Let's say there's 10%/year inflation. Do those new tokens go to: a) the old token holders b) some other group

4) For instance, BTC has inflation. It's the bad kind! The new BTC goes to miners, inflating away holders. But, of course, BTC's inflation is capped, and it converges to a fixed supply, so this isn't so bad.

5) SOL's inflation is the good kind: you get it for staking, which anyone can do. So holding and staking SOL isn't bad because of inflation; price might decrease but your holdings will increase. Lots of PoS chains work this way.

6) The _really_ bad kind is one where: a) there's continuous inflation b) the inflation doesn't go to the token holders So e.g. yield farms with unbounded inflation that give new tokens to farms.