Can a forum currency be inflated?

[Niyi Briggs]

I really don't understand the economics of forum currency but is it possible for the forum currency to be inflated.

One of the admins made a post that he wouldn't want the currency of the forum to be inflated. I am forced to ask how that is possible.

What are the factors that could cause a forum currency to go through inflation?

 

[riberet19]

Well i do not know neither how could this happen to tell the truth i dont really think it can happens, but if it can i want to know too, because for example 1 rif token is equivalent to 1 dollar.

 

[Niyi Briggs]

I am waiting for the experts to come say something about this. @Joshua Farrell, please do justice to this discussion. How can a forum currency be inflated and what are the immediate and remote causes.

 

[Joshua Farrell]

In a normal scenario, the only ways you get credits put into the system, is by posting, and through events like the valentines day event we had. In some cases, the forum currency can be bought, which increases the amount available to be donated or used for stuff. RIF users have the ability to purchase RIF Cash, as of a few weeks ago, and this does present with the potential of there being more credits than what was generated by posting. BUT because we can withdraw the RIF, the potential of this causing issues, is really not something to worry about.

In the case of @Jordan mentioning that he doesn't want to manually add more to the system, is that by manually adjusting it, it causes an influx of credits that do not have a source of creation, due to posting or purchasing. And this manual adjustments essentially inflates the number, if done repeatedly and regularly enough. Essentially making it so that there is no natural way to gain the RIF Cash.

This is a concern for him, as tracking how much is in the system, and if he can pay for it all upfront can be an issue, if "free" credits were added to the mix.

Alteast in the case of those purchasing the RIF Cash, the money earned from this, will help with maintaining a flat rate of how the RIF Cash is attached to an actual cash value.

 

[Niyi Briggs]

@Joshua Farrell this is a very concise explanation. Even as the owner, he doesn't interfere with the system if I can get you right. He allows demand and supply to work efficiently as regards the forum currency.