This is not investment advice.
This is not a solicitation of investment.
Presenter is a community envoy, not Ark.io team.
Accuracy of statements is not guaranteed.
Presentation does not contain any insider information.
According to Ark.io, the Ark token is not a security.
Presenter likely holds Ark tokens.
Presentation Disclaimers
Additional Points
This presentation is not about voting, voting rewards, or expected payouts from voting. That will be covered in another presentation. This is only about Ark inflation and how new Ark tokens enter the ecosystem in general.
This presentation is only
about the Ark MainNet.
Ark sidechains, bridgechains, or
forks may have different parameters.
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Ark Inflation Myths
MainNet & Genesis Block
Forging & New Ark Tokens
Inflation Mechanics Graph
Ark vs. Fiat Inflation
Ark Inflation Factors
Ark Inflation Mechanics
People Hear:
“Ark has no maximum coin cap” True
“Ark has inflation” True
“Ark tokens will generate forever” True
People Fear:
“Oh No! Inflation is bad” Kind of False
“Ark is just like Fiat. Inflation!” False
“Ark’s inflation will get worse and worse” False
Ark Inflation Myths
March 21, 2017:
MainNet went live, and 125 million Ark created in Genesis Block
Ark was distributed to various funds and investors accordingly
Genesis Block
The Genesis Block is the only time an arbitrary number of Ark
tokens could be created
The Genesis Block = the first block in the blockchain
Coin Protections
Neither the Ark team nor any delegates can randomly create
arbitrary amounts of tokens (unless Factors: more on that later)
MainNet & Genesis Block
Delegate Nodes
Secure the blockchain
Maintain a copy of the ledger
Users
Vote for which delegates are allowed to create new Ark tokens
Voters receive voting rewards from Forging Delegates
(This presentation is not about that)
Forging Delegates
Top 51 delegates forge new Ark
2 Ark per block, which is an 8 second time period
Forging & New Ark Tokens
System creates Ark tokens
2 Ark per 8 Seconds A.K.A.
900 Ark/Hr, 21,600 Ark/Day,
7,884,000 Ark/Year
Forging Delegates take turns
Top 51 always in flux
1 Top 51 Forging Delegate:
12,705 Ark/Month Pre-Share.
Final delegate earnings vary.
Most Forgers give 80-100% away.
Forging & New Ark Tokens
51 Forgers,
Random
Round-Robin
based on the
vote count at
start of round
Round = 408 Sec.
This presentation is not about delegates earning
votes or paying voters. The takeaway is:
This number is fixed forever and ever,
unless Factors happen
(More on those later)
7,884,000 New Ark/Year
= 7,884,000 new ARK tokens forged during that year
= Total ARK in circulation (XXX,XXX,XXX)
= Inflation percentage for that year (always declining)
ARK Inflation Mechanics Graph
21-Mar ‘17
21-Mar ‘18
21-Mar ‘19
21-Mar ‘20
21-Mar ‘21
21-Mar ‘22
21-Mar ‘23
21-Mar ‘24
21-Mar ‘25
21-Mar ‘26
21-Mar ‘27
21-Mar ‘28
21-Mar ‘29
21-Mar ‘30
21-Mar ‘31
21-Mar ‘32
21-Mar ‘33
6.31%
5.93%
5.60%
5.30%
5.04%
4.80%
4.58%
4.38%
4.19%
4.02%
3.87%
3.72%
3.59%
3.47%
3.35%
3.24%
+
X.XX%
125,000,000
132,884,000
140,768,000
148,652,000
156,536,000
164,420,000
172,304,000
180,188,000
188,072,000
195,956,000
203,840,000
211,724,000
219,608,000
227,492,000
235,376,000
243,260,000
251,144,000
Ark Doublings
How long it will take for Ark to double the previous doubling
Each doubling takes longer than the last, and so on
Refers to doubling of total Ark supply- forging stays 2 Ark/Block
Doubling #1: ~16th Year of MainNet (~250M Ark)
Doubling #2: ~47th Year of MainNet (~500M Ark)
Doubling #3: ~110th Year of MainNet (~1B Ark)
Not all Ark in circulation is used for voting
Voting will double your Ark faster than this
Voting & Rewards are discussed in a different presentation
STOP WONDERING ABOUT IT FOR NOW :)
Ark Inflation Mechanics
Ark Inflation
Fixed quantity annually
Declining percentage annually
Doublings take longer and longer each time
Future inflation rates are known today
Fiat Inflation
Wildly fluctuating quantity annually
Variable percentage annually
Doublings happen at a generally fixed rate (this is bad)
Future inflation is unknown due to possible crises, etc.
Ark vs. Fiat Inflation
USD
3.27%�3.41%�8.71%�12.34%�6.94%�4.86%�6.70%�9.02%�13.29%�12.52%�8.92%�3.83%�3.79%�3.95%�3.80%�1.10%�4.43%�4.42%�4.65%�6.11%�3.06%�2.90%�2.75%�2.67%
ARK vs. Fiat Inflation
Year
1971�1972�1973�1974�1975�1976�1977�1978�1979�1980�1981�1982�1983�1984�1985�1986�1987�1988�1989�1990�1991�1992�1993�1994
Ark
6.31%�5.93%�5.60%�5.30%�5.04%�4.80%�4.58%�4.38%�4.19%�4.02%�3.87%�3.72%�3.59%�3.47%�3.35%�3.24%�3.14%�3.04%�2.95%�2.87%�2.79%�2.71%�2.64%
2.57%
Year
2017�2018�2019�2020�2021�2022�2023�2024�2025�2026�2027�2028�2029�2030�2031�2032�2033�2034�2035�2036�2037�2038�2039�2040
USD
2.67%�2.54%�3.32%�1.70%�1.61%�2.68%�3.39%�1.55%�2.38%�1.88%�3.26%�3.42%�2.54%�4.08%�0.09%�2.72%�1.50%�2.96%�1.74%�1.50%�0.76%�0.73%�2.07%�2.11%
Year1995�1996�1997�1998�1999�2000�2001�2002�2003�2004�2005�2006�2007�2008�2009�2010�2011�2012�2013�2014�2015�2016�2017�2018
Ark
2.51%�2.45%�2.39%�2.33%�2.28%�2.23%�2.18%�2.13%�2.09%�2.05%�2.01%�1.97%�1.93%�1.89%�1.86%�1.82%�1.79%�1.76%�1.73%�1.70%�1.67%�1.64%�1.62%
Etc.
Year
2041�2042�2043�2044�2045�2046�2047�2048�2049�2050�2051�2052�2053�2054�2055�2056�2057�2058�2059�2060�2061�2062�2063
2064
Comparing the inflation for each year with USD and ARK over a 50 year period shows a system-controlled, predictable, and declining percentage rate for ARK, and a human-controlled, unpredictable percentage rate for USD that does not seem to be going down.
The key difference with Ark is that you can save your Ark, and as new Ark are created, you receive a proportional amount of Ark deposited into your wallet by a forging delegate for whom you vote.
With fiat, you can save your fiat in a savings account, but as new fiat is created, you do not get a fair proportion of it deposited into your savings account. You are forced to fall behind in purchasing power, or attempt to keep up by either receiving increased wages, risking your money in markets (including real estate), borrowing it as a loan you have to pay back with interest, going into massive debt so you can go to school in order to increase your wages, or put strain on cash flow by increasing monthly savings deposits over time.
Ark vs. Fiat Inflation
Inflation is Good
Fiat/Ark: Stimulates economic growth
Fiat/Ark: Replaces loss due to damage or lost keys
Fiat/Ark: Promotes flow and movement of funds
Ark: Rewards network operators
Ark: Helps the citizens through voting rewards
Ark: Fair and predictable inflation rate
Inflation is Bad
Fiat: Punishes savers, they don’t receive benefits directly
Fiat: Unpredictable, so future value of money saved is unknown
Fiat: Oligarchical, the few decide when and how to devalue money
Ark vs. Fiat Inflation
Uptime/Productivity
If a Forging Delegate node is unprepared to forge a block when it is their turn, the block is not forged, 2 Ark are not created, and the transactions wait for the next delegate and block. The node efficiency is represented by Uptime or Productivity %. For this reason, the Ark forged each year will be less than 7,884,000.
Ark Inflation Factors
ArkDelegates.io
Desktop Wallet
Ark Improvement Proposals
Ark node code is open source. Network changes are suggested through a system called AIPs. 100% Consensus needs to be reached from time to time, in order to implement certain system-wide improvements- increasing block size to scale the network, for example. This would not be contentious like with Bitcoin Cash, because Ark decentralization is achieved not through mining power, but through voting and delegate representation. Thus, increasing block size would not harm small participants. Hypothetically, an AIP may appear that proposes to change the forge rate to differ from 2 Ark per block, but this is quite unlikely.
Ark Inflation Factors
Participate in the Ark Improvement Proposal
discussion on Github! For all voters, not just coders.
Anyone can contribute their opinions, and make sure you are voting for a delegate who supports your views.
GitHub.com/ArkEcosystem/AIPs
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Credits
Presentation: ArkStickers.com
Base Template: ARK_NYC
Visual Assets: Ark.io
Suggest edits and improvements to this presentation by emailing getarkstickers@gmail.com