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When wealth is created through work, shouldn't the currency supply also increase to ensure the liquidity of wealth?

Edit: The total supply of IOTA tokens right now is (3^33-1)/2. The circulating supply of tokens will most likely decrease with time than staying fixed (lost seeds). Hence, the total supply is bound to be increased, eventually.

From the answers, it seems the supply will, if ever, be increased by multiplying the holdings of every token holder by a multiplier. The real question though, is what the multiplier would be so that it is optimized for ternary computing? Any expert's opinion?

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  • If you think your questions was properly answered remember to accept a given answer.
    – derfium
    Commented Nov 30, 2017 at 18:12
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    Possible duplicate of What is the total supply of IOTA?
    – Helmar
    Commented Dec 1, 2017 at 10:36
  • How are you even thinking it's a duplicate? I even mentioned the total supply in the question details. This question has never been about the current total supply.
    – Bayequentist
    Commented Dec 2, 2017 at 18:43

3 Answers 3

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The total supply of IOTA will not increase based on the current design of the technology. Currency supply doesn't have to increase if the value of the currency increases to offset it. Wealth creation is therefore reflected in the increasing value of the currency as opposed to the increasing supply.

One other point -- if the value of IOTA increases so much so that the value of a single IOTA (not MIOTA) becomes too high for reasonable microtransactions, the supply can be diluted in order to create more units of IOTA without reducing the overall value.

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  • By "diluted" do you mean adding more decimal places?
    – Phil-ZXX
    Commented Nov 30, 2017 at 0:12
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    Yes, exactly. Except I don't think IOTA is designed to have decimals, so they would instead increase the supply by multiplying everyone's IOTAs by 1000, or something like that. A numerical change, but not a value change.
    – aboose ♦
    Commented Nov 30, 2017 at 0:14
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    We probably wouldn't multiply it by 1000 but by some number that keeps the result ideal for ternary computing.
    – Zauz
    Commented Nov 30, 2017 at 6:34
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    Current plan is to do an equivalent of a stock-split to change the supply from (3^33-1)/2 to (3^81-1)/2.
    – Come-from-Beyond
    Commented Nov 30, 2017 at 20:54
  • What will be the metricprefixes for the scale above yotta?
    – Muanh
    Commented Dec 1, 2017 at 21:03
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If the total supply will be increased (look at other answers to see why they would be increased), all holdings would be multiplied by a number that results in the total supply still being an ideal number for ternary computing.

Ideal for ternary/trinary computing

Ternary computing uses a number system that has only 3 different digits [0,1,2] often also denoted as [-1,0,+1] (balanced ternary) or just [-,0,+].
It's just like the decimal system uses 10 different digits [0,1,2,3,4,5,6,7,8,9] and the binary system uses 2 different digits [0,1]

Ternary ideal numbers are consisting of only the digit with the highes value 2
e.g. 222 222 222
Furthermore they should probably have a length that is divisible by 3 or even a number that has a cubic root of 3 or multiple of 3 because that's how ternary hardware would be built. (Similar to binary hardware which stores data in bytes = 8 bits)

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So if you hand out Iota on a daily basis this would keep liquidity of wealth constant. The Question which arises now is, how should they be distributed. In blockchain/mining based environements distribution only give miners preverence. This leads to an unfair distribution of wealth. Increasing by multiplying everyones IOTA, if the price is too high, is way more fair.

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