What is Bitflate?
Bitflate is a Bitcoin-based crypto currency. Bitflate has inflated supply.
Bitflate chain is separate and has no relationship with Bitcoin chain.
Bitcoin has a supply limit of 21 million coins. This limit creates a value puzzle for Bitcoin. When all bitcoins are mined, there’s 0 coin reward. This means the value of a bitcoin can be infinite.
Bitcoin encourages HODL behavior. It’s being seen as a Store of Value (SoV). We believe other cryptocurrencies with a supply limit would behave as a SoV.
The goal is to create a stable crypto currency, stable coin through inflation.
By adding inflation, we can:
- Prevent price from fluctuating wildly.
- Discourage HODL behavior, increase liquidity.
Bitflate is based on Bitcoin. It has the following differences:
- It creates 19.3 million coins in the first halving.
- Proof of Work timespan adjustment is 3.5 days.
- Block time is 2.5 minutes. It has 1-year halving interval.
- In subsequent halvings, coins inflate 7% per year. At this inflation rate, coin supply doubles - every 10 years.
Here’s the block reward schedule for the first 10 halvings:
- 0: 50
- 1: 25
- 2: 12.5
- 3: 6.25 (end of halving)
- 4: 6.56 (start of inflation 7%)
- 5: 7.02
- 6: 7.51
- 7: 8.04
- 8: 8.60
- 9: 9.20
- 10: 9.85
Why do you want to have inflation?
Bitcoin has fixed supply. The currency is deflationary. It causes price to fluctuate wildly. We think it is a good Store of Value (SoV). But for transactions, price fluctuation is a problem.
Existing stable coins are typically implemented through bank ledger. This requires 3rd party centralized banks. We want to create a stable coin through inflation. We think inflation would add liquidity to Bitflate currency.
Why Bitflate inflation rate is 7%?
We take a not-Bitcoin approach of setting inflation rate fairly high. If we set the rate low, the currency may behave just like Bitcoin.
If this coin ever receives widespread adoption, high inflation can meet market demand.
We pick the rate of 7% from Rule 72.
Coin supply doubles every 10 years.
What is Bitflate relationship with Bitcoin?
Bitflate started with Bitcoin Core codebase. It has changes in reward schedule and branding. Bitflate chain is separate and has no relationship with Bitcoin.
Can I use Bitflate for business?
Bitflate is at experimental stage as of July, 2019. We strongly advise you NOT to use it for business. The network is not secure.