ALGO Reddit Mentions | ChartExchange

First of all, let me clarify - I am open to considering uncapping \*IF\* 100% of emissions go to validators (and node runners via commission). Yes, I, like everyone else, bought thinking supply would be fixed forever, and to be sure, if we can find a solution that avoids uncapping, awesome. But reality is reality and I think we need to be clear-eyed about this.
1. Obviously, for Algorand to live forever, it needs node runners and the stake they host.
2. Silvio assumed the community would self-host/stake, so long-term sustainability was a non-issue. That sadly didn't turn out to completely be the case and staking rewards were implemented to ensure network safety.
3. Staking Rewards now being a thing = the game has changed. Old assumptions ("cap is sacred") have to be reexamined, because those rewards have to come from somewhere, w/o the Foundation.
4. Why not simply raise the fee? Yes, for sure this could be part of the solution. At today's TPS, we'd need over a 100x increase in fee to get to the 100M algo we deliver in staking rewards today, to get to 20% staked float.
5. Algorand competes against other chains, including some with comparably low fees today that are \*not\* capped and don't have validator sustainability pressure. Raising fees substantially should be carefully considered in that context, as well as in the impact on the kind of applications we can host.
6. The emission to support rewards today is only about 1%. The tradeoff for assurance in forever longevity seems reasonable. It could be viewed as a positive by builders, especially institutional.
7. If emissions go 100% to validators/node runners, they aren't diluted at all - in fact their ownership of the network goes up automatically (very slowly). The "cost" of dilution is paid for by everyone who holds ALGO. That seems fair because everyone benefits from validator activity, even if your ALGO sits in a lending pool and never moves to incur network fees. It might even improve the security of the chain by encouraging more people to stake.
8. What if we combined minting for validators with burning transaction fees? This way, if transactions skyrocket a few orders of magnitude, we are now looking at a deflationary scenario.

None of this is to say uncap is the only solution AT ALL. There have been a lot of great discussions on how fees / fee markets could be implemented, etc. and we'll see what King Safety proposes. But if we care about the longevity of the network I think we need to all be open to the idea of cap removal for validator emissions.

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