as long is there is more coins being mined than lost the total circulating supply will increase, which means users will have more coins. more coins means that if you lose a wallet thats more coins you will lose. this happens untill the amount of coins mined is equal to the amount lost, at this point the supply will become stable.
the value at which it becomes stable will depend on the rate people lose coins, assuming a loss of 1% each year, the supply becomes stable when the emission of grin in a year is equal to 1% of the total supply, doing some rough maths thats around 3 billion
so doesn’t matter how much is lost. the supply will reach a equilibrium. if more is lost then the equilibrium is lower, if less then it’s higher.
for grin which is still low value the rate of loss could be much higher and the equilibrium lower
or in other words the equilibrium is reached when the loss is 1 grin/s and emission is 1 grin/s
kinda beultiful isn’t it?
also it means that grin has a effective supply cap that is exatcly when there is just enough new coins to replanish lost ones
here is a funny thought, Grin miners fundamentally make more money even after equilibrium and in similar circunstances, both bitcoin and grin is going to reach some kind of equilibrium between miners and users, you may think the block reward for both is going to be the same value after equilibrium in similar circunstances. but here is something interesting, after equilibrium there will be a stable supply of coins for Grin while a decreasing supply for bitcoin (no emission just fees), each bitcoin gain more value over time compared to Grin… but wait a minute… if your Grin is not valuing as fast where does the value goes?? it can’t just disappear. the answer is the Miners! if you lose a bitcoin, it’s like making a donation to everybody in the network, while if you lose grin on average all that money goes to the miners, even without considering fees.
in short, there is fundamentally more incentive for miners on Grin, which means a more secure network. the disinflation on grin is not in vain. it’s the price you pay (when you lose coins) for a more secure network. also you still get a scarce supply at equilibrium even with that.
