The current inflation is at 6.9%

With that out of the way, for people that just wanted the number, there you have it.

Explanation:

I was interested in the Hive inflation model, or deflation, as some like to call, as it is expected to keep dropping until it reaches, and stabilizes, at 1% a year.

So I, naturally as a developer, headed to the Hive Github repository:

https://github.com/openhive-network/hive

However, I noticed something weird, the readme.md documents says that the inflation is at 10%, but I remember that number from the Steem blockchain (before the fork), and it could not be right.

So I did the math by myself.

By looking at the Hive block explorer, on a block I have got right now, produced by @good-karma
https://hiveblockexplorer.com/block/54832111
(made by @PenguinPablo)

The block producer (easiest inflation source to calculate from) reward is sitting at 10% per block, and the producer got 0.25HP (Hive Power) from that block:

According to the readme.md on github, the inflation model is:

• 10% APR inflation narrowing to 1% APR over 20 years (wrong data)
  • 10% of inflation to block producers.

But let' do the math.

On https://hiveblocks.com we can see the current circulation supply:

• 381,457,172 Hive only
• 411,066,161 (in Hive) Hive + SBD

So doing the math:

• Right now every block generates a HP reward of 0.25HP to the producer
  • 10% of inflation to block producers, so total inflation is 2.5HP per block
  • targeting 1 block every 3 seconds
  • 2.5HP * 20 blocks per minute * 525,960 minutes per year = 26,298,000HP in 1 year
  • Current supply is 381,457,172 Hive (Hive only) or 411,066,161 (Hive + HBD)
  • 525,960 is 6.9% out of Hive only supply, or 6.4% out of Hive + HBD
  • 30% margin of difference. Must be updated

I made a pull request on the repository because a 30% error is huge, it is off by many years.
https://github.com/openhive-network/hive/pull/37

The documentation should, also, specify when the measurement was taken, and when is it expected for the goal of 1% a year to be reached. Right now it has just been saying "in 20 years" but does not say when to start counting from, nor when to end. With that information one could calculate and find out even if the document is not updated!!