are there any plans to reduce inflation in the future? As far as I see it, 7% is the current target and that’s pretty high. I’m unsure how attractive long-term holding will be as a result.
I know the argument is that one can stake and the rewards would compensate for the inflation. However, this argument is unfortunately disconnected from reality because almost everyone is affected by tax. For example, all things equal, if Mina inflates by 7% and I get 7% in rewards, I lose 3.5% in taxes (tax rate for staking returns here is around 50%). Imagine Mina otherwise keeps it’s value and I hold Mina for 25 years; then I’d lose 59% of my holdings in tax.
Thanks a ton for answer