Moonbeam (especially Glimmer), many regret that this Glimmer token is inflationary with an inflation rate of five percent per year. In my opinion, tokens that have inflation or inflation are not always bad. It’s not always that inflation is bad, it’s also widely discussed by economists. Discussed with Glimmer tokens. The inflation that occurred in Glimmer actually I think it’s pretty good. You can check here https://moonbeam.foundation/grants/.
So, this is how we know the main purpose of inflation (I’ve already mentioned) first is the need to pay for ongoing network security needs. the second is to pay for para chain slots. the third is to provide incentives to collators who provide collation services (which provide block production) to support the network. The details of the 5% inflation earlier were clear. 1% for collator intensive. 1.5% for para chain bonds. 2.5% for those who stake and support the selection of collaborators. It’s all clear, from its use, from the purpose of inflation to the mechanism for sharing the results of the inflation earlier.
Moonbeam If there is no inflation, it will be heavy
why heavy? Because of this. The first is that needs to pay for a para chain slot in Polkadot (that obviously costs money). Second, let’s be honest, who wants to secure and produce blocks without getting a proportional fee? can we make a payment from the results of the transaction fee earlier (many are like that)? it’s just that it keeps coming back, Has to pay for the para chain slot. For a decrease in liquidity you can check here https://lunartechfdn.medium.com/first-movr-advantage-the-moonwell-liquidity-drop-bb289f8acaec
And I think that’s one of the things that is quite burdensome if it is only obtained from transaction fees. So I think this 5% inflation is actually quite positive, pretty good for a sustainable Moonbeam. so it makes sense in terms of business. Then also inflation is only 5%. Meanwhile, when we pay the transaction fee, there is a burning mechanism of 80%. So if the Moonbeam network continues to grow, the more users there are, and the more people pay transaction fees, it’s not impossible that this Glimmer token (GLMR) will be deflationary. After all, only 5% per year is actually not very much.
Grant Program at Moonbeam
At Moonbeam there is a grant program. This grant program is carried out by the Moonbeam foundation. For more information, you can click this link https://moonbeam.network/announcements/moonbeam-announces-grant-program/.
The goal is clear to improve the Moonbeam network chain ecosystem such as Defi, NFT, games insurance, and so on. So there’s quite a bit of purpose, but it’s good because it’s to improve the ecosystem. I have said many times that development funds are needed. Whether it’s a network chain or blockchain, whether it’s just a token of development funds, it’s really needed for the progress of the ecosystem itself.
If it’s a network chain or if for example, it’s just an application or token that doesn’t have development funds (better skip it). Because of the possibility of him developing I think it’s small. compared to those (projects) that have development funds.
Moonbeam believes that the future is multi-chain. and I don’t think Moonbeam is just a bridge between Ethereum and polka dots. I think Moonbeam is like a platform where it helps developers take advantage of the scalability of polka dots without having to rewrite heavy code. even if they are the bearers of this task and have to rewrite the code not much has been written (meaning not heavy, not difficult).
Because of that, Moonbeam’s claim or promise when there are developers who use their network chain is guaranteed not to rewrite heavy code. which means it may be simple to write. The Moonbeam cross-chain integration is done by becoming a para chain on the Polkadot network. whereas we know all those polka-dot networks, providing integration and connectivity between park chains that are connected to non-polka-dot network chains such as Ethereum and Bitcoin.
Indirectly, when Moonbeam enters the polka-dot para chain. Moonbeam can also interact directly and can communicate with other polka-dot para chains. With Ethereum and BTC, it’s clear because of the polka-dot system. But the best part is that Moonbeam can interact with other polka-dot para chains (there are lots of them). In essence, Moonbeam invites Ethereum developers to move to polka-dots, in order to make more use of the polkadot ecosystem.
As additional information
I found an article that says that moonbeam can process more than 10,000 transactions per second. In comparison, Ethereum is only capable of completing 15 transactions per second. So that is indeed One of the reasons why they should move to the Moonbeam network chain, instead of staying on Ethereum. Because its scalability is much higher in Moonbeam. Because Moonbeam uses polka dots as its para chain, it has above average transaction speeds.