The inflation model of the DotP2P DAC has aroused antipathy in the Chinese community. And I found that many old BTS participants also can't answer to "why inflation".
If you have pressed other where through out other posts in this forum, do you mind answer directly to the question?
The main accusation of this inflation model is, Big Mans can always stay to be delegates and win all the new minted coins / shares. And it's a positive feedback loop which can destroy whole economic balance.
I've always been a Bitshares missionary in the Chinese community. But when I was asked this question, I could't give an answer.
What is your answer to this?
Not just the Chinese community is against this idea. A lot in the American community are against it too and have voiced their opinions.
The only reasoning I have for why inflation is that the developers didn't have the foresight to budget in the cost of development into the DAC by giving the developers a percentage up front like what Mastercoin did.
The problem with inflation is instead of a fixed amount of tokens set aside for development, there is now an unpredictable indefinite element to the process. Clarity and precision are preferred in matters such as these and inflation doesn't give a good impression in that regard.
Ask them if they'd prefer a 30% preallocation for devs with no control over how it is spent. This DAC isn't getting bootstrapped from domain sales, that's for sure.
I can't speak for the Chinese community or anyone else really but I would prefer that. I'd rather developers get their fair share up front.
The problem with going with inflation is it validates the concept and psychology of it. Why validate a concept which is inherently bad? Companies use dilution because they went over budget and it's not usually something investors see as a good thing. Investors don't invest to have their shares diluted after the fact. If it happens as a pre-allocation then there is not the same psychology of being taxed, or diluted, or being messed with by an invisible hand reaching into the pockets of investors after the fact.
I prefer to do my calculations prior to investing and inflation, dilutions and other things such as this make it a lot more complicated.