DREP Inflation Model¶
The block reward is 100 drep coin, halved every 4 years. The inflation rate gradually decreases from 2.0591% per year to 0, and the block reward eventually becomes 0. The total inflation rate for 30 years is 14.3% or so.
Prerequisites, 1 the user stakes 50 million drep coins to qualify as a mining node; 2 the user prepares hardware devices. 128 GB disk space (as of September 2018, increases over time), 4 GB of memory (RAM), ~ 150MB/day download, ~1.5GB/day upload.
The campaign cycle is 100 blocks, and after the end of the cycle, the drep system will calculate a reputation value based on the account’s stake and the number of votes cast by other supporters, with the top 21 nodes selected. They will have mining access for the next cycle. Each mining node gets an annualized rate of 16%.
The mining node gets 80% of the staking reward, and the remaining 20% is distributed to the voters according to their voting share. The annualized rate of voters is inversely proportional to the number of voters, and drep encourages voters to support new mining nodes to achieve stability.