Inflation: Long-Term Sustainability

Minting and Inflation Considerations: If the developer activates minting at its maximum rate, initial inflation will be high due to the substantial number of new tokens entering circulation. However, because the maximum mintable amount is fixed, this inflation rate will decrease over time. Each year's new minting will represent a smaller percentage of the growing total supply, thus reducing the overall inflation percentage and leading to a more stable minting rate over the next 3 to 10 years.

Inflation Dynamics: The contract is designed with long-term sustainability in mind by managing inflation through a self-reducing model. Although the annual amount of PEPE minted remains constant, the inflation rate decreases as the total supply grows. For example, if 100 million PEPE are minted when the supply is 100 million, the inflation rate is 100%. If the supply increases to 200 million the following year with the same 100 million minted, inflation drops to 50%. This trend continues with the rate decreasing further in subsequent years—33% the next year, 25% the year after, and so on.

Inflation Reduction: This model aims to bring the inflation rate down to around 20-30% within a few years, potentially decreasing to below 10% over a longer period. This gradual reduction ensures that OG Pepe’s supply remains scarce compared to other Pepe tokens, preserving its value.

Compensation and Ecosystem Promotion: To address concerns about reduced percentage holdings and potential value decreases during periods of high inflation, the developer has outlined several compensation strategies:

1. Airdrops: Current holders may receive airdrops of additional PEPE tokens to help maintain their percentage of the total supply. This approach aims to ensure that holders do not lose value as a result of the increased supply.

2. Ecosystem Tokens: To promote the broader ecosystem and provide additional value, airdrops of WOJAK and CHAD tokens may be implemented. This strategy is designed to support the overall growth of the ecosystem and reward participants.

3. Burn Mechanisms: The use of token burns through various ecosystem activities will help lower the real inflation rate, potentially making Pepe deflationary in the long run. By removing tokens from circulation, the impact of new minting on inflation can be mitigated.

Future Supply Projections: It is estimated that OG Pepe’s supply will take at least 14601.57 years to reach the supply of the other Pepe tokens. In reality, this may take even longer. So although initial inflation will be high, it will stabilize in the mid-term and become healthy and balanced.

Other Pepe Supply / Max Daily Mintable OG Pepe / 365.25 days = 14601.57 years

420690000000000 / 78881000 / 365,25 = 14601.57

Community Impact: The predictable minting rate and long-term supply projections offer valuable insights for users. The developer's plans to maintain fairness and liquidity through airdrops and ecosystem support are intended to ensure that no one loses value due to these decisions, while also focusing on the long-term viability and stability of the Pepe token.