ntroducing PIRL Monetary Policy – The future of coin supply and Block reward distribution
Pirl began as an Ethereum inspired project, having launched as Ethereum had been. As such, just like Ethereum, Pirl has no max supply. Technological innovation and structural upgrades have been at the forefront of the Pirl team’s goals since day one. It has enabled us to create the foundation of a robust dapp hosting platform while implementing our own unique features.
As the project progresses, it becomes necessary to widen the scope of our vision, to re-assess the different aspects of the project, and adjust our current goals accordingly. We have found that the economics of the project need immediate and careful scrutiny. Up until this point, we have been gathering data in order to set the correct course for pirl in this aspect, as this is something that needs to be done right, and if possible, only done once. Thus we have laid out a plan to enact both passive, and active anti-inflationary mechanisms.
Block Reward Reduction, Reallocation and Max Supply Cap
The “block rewards” are the sole creation events for Pirl coins, being distributed to both the miner and the masternode operators for the Pirl network. Controlling and restricting the block rewards themselves is the most effective method of avoiding a high rate of inflation. As the popularity of Pirl increases over time, the size of the block reward will be reduced, decreasing the supply of newly issued coins until the Max Supply Cap, that is also being introduced with this release, is reached. Every two million blocks (block time target is at 13 seconds), the reward will be decreased until reaching the Max Supply Cap of 156,306,732.71 Pirl coins. Starting with block 2,000,000 the block reward will also be reallocated, this will even out the coins issued between masternode operators and miners.
Locked Masternode Collateral
Masternode operators are a key component to the Pirl network’s stability and functionality. In order to operate a masternode, the owner must lock the required collateral in Pirl coins into a contract, thus taking those respective coins out of circulation. Operators are rewarded for their dedication and contribution to the Pirl project by receiving a portion of the block reward. This locked collateral held by masternode owners passively creates demand by decreasing the available supply of coins. At the time of this writing, nearly 40% of the issued coin supply is locked into masternode contracts. This currently is a feature unique to all Ethereum based projects, Pirl having to be the first to have this feature implemented.
With the full implementation of the Poseidon platform, and all of the services offered there, “coin burning” will actively reduce inflation. A portion of the fees paid for using services such as the marketplace and exchange will be transferred directly to a 0x0 address, essentially erasing them from the coin supply. As the Pirl platform grows in popularity, the rate of coins being burned also increases.