As per https://docs.basisdollar.fi/ProtocolParameters, during expansion periods, inflation is capped at 4.5% or 9.0% (depending on whether there is system debt outstanding).
The rate of BSD printing may result in rapid deceleration of BSD price past $1, until it is below $1.
2.5% compounded every 12 hours, doubles the amount of BSD in existence in 28 epochs (14 days).
How it works (Mechanism):
Amend the following as such:
WDP above 1$ where amount of $BSD in Treasury contract >= total Supply of $BSDB (Basis Dollar Bond) Maximum Supply Expansion: 1.25% Expansion Percentage: WDPrice - 1 * 100 or 1.25% (whichever is lower)
WDP above 1$ where amount of $BSD in Treasury contract < total Supply of $BSDB (Basis Dollar Bond) Maximum Supply Expansion: 2.5% Expansion Percentage: WDPrice - 1 * 100 or 2.5% (whichever is lower)
Advantages:
Disadvantages: