Goals of Peercoin

Sunny King, the inventor of Peercoin, stated in an interview that there is a compromise between a cryptocurrency’s security and 0% inflation in its value. Miners of Bitcoin, for example, will ultimately no longer be rewarded with new bitcoins, and their entire revenue will be based on fees, reducing the economic incentive to maintain the network’s integrity. Peercoin’s minting method incorporates inflation into the system, providing minters with a constant economic incentive. “An alternate design approach,” according to Sunny King, “is to acknowledge the minimal inflation rate required to protect the network while allowing transaction fees to be destroyed to offset inflation. This, in my opinion, is a superior method that can offer the network stronger and more reliable security while conditionally maintaining strong store-of-value qualities.”