DOT inflation is not absolute evil!

To fully understand the context of Polkadot inflation and allay any concerns about it, it is essential to analyze a few key points.

First, many people are concerned about the high inflation that fiat currencies have experienced in recent years, fearing that this could happen with Polkadot. However, it is crucial to understand that staking DOT allows you to ride out inflation rather than suffer it.

When we talk about inflation in Polkadot, we are referring to a fixed percentage of 10% and it is important to clarify this point, since the correct percentage can significantly influence the perception of the phenomenon.

A crucial aspect to consider is that a large portion of inflation goes to stakers, while a smaller portion goes to the treasury (see image above). This is an important point, because it indicates how a part of the inflation directly benefits those who actively participate in the network.

A further element to keep in mind is that the return on staking can exceed 10% per year. This may seem surprising, but it is possible thanks to the fact that only 54% of the circulating supply is locked in staking. This means there are additional earning opportunities for those who actively participate in the staking process.

In essence, the fear of inflation in Polkadot can be demystified by fully understanding the underlying mechanisms. Staking DOT offers a way to beat inflation, allowing users to earn returns above the stated inflation rate. This demonstrates how Polkadot offers a robust and incentivized financial ecosystem, where participants can be actively involved and rewarded for their contributions.