Capped, but Uncapped - A Hybrid Supply Model

Currently, one of the largest debates in the community is around the cake supply, and fears around inflation. 2 opposing proposals, one for capping the supply and another against, have already been proposed. I propose a hybrid model. A best of both worlds approach. The benefits of such a model is that it satisfies the wants, needs, and fears of both sides. Those who want a capped supply, and those who do not.

I propose to cap the supply of Cake. This will produce all of the effects wanted by those asking for a fixed supply.

On top of that, I propose to introduce another pair of tokens, let's call them Flap Jacks and Icing Sugar. Flap Jacks would serve the same purpose that Pancakes are currently serving. It would be infinite in supply just like Cake is now. The difference is that Cake would now be capped, and Flap Jacks would have the infinite supply property, and any other property that cake had. Icing Sugar would serve the same purpose that Syrup currently serves, but for Flap Jacks. This would satisfy the requirements of those who are arguing to not cap the supply.

CAKE --> SYRUP FLAP JACKS --> ICING SUGAR

How would it work? Set a fixed supply limit on Cake. Once 50 million (example) Cakes have been created, rewards will no longer be paid in Cake, but in Flap Jacks. For everyone. If you earned Cake before, your Cake is now more valueable than Flap Jacks, simply because it is scarce, not because the value of Flap Jacks was refuced. The value of Flap Jacks would be whatever the value of Cake was at the time the max supply is reached. From that point on everyone earns Flap Jacks and Icing Sugar. Flap Jacks is Cake, but with a different name. Flap Jacks would then handle all the risk associated with an infinite supply, and Cake will be protected. Liquidity pools and staking would then distribute Flap Jacks and Icing Sugar. Icing Sugar would then serves the purpose of Syrup. Syrup would become special, and give you access to special pools, thereby giving Cake value.

What is the benefit? Investors will hold cake and not sell, because they know there is only a limited number that will be available later. This will create a good stable price for some time, without fears from sellers, thereby improving the long term chances of a successful project.

The inflation property would now be shifted from Cake, to Flap Jacks. Cakes price would stabilise at the very least. Any problems that would have occurred on Cakes price before, due to infinite supply, would now happen on Flap Jacks. Keeping the value of cake safe. Those who argue that an infinite supply is necessary, still get their infinite supply. If it is proven in the future that infinite supply is a problem, the problem would affect Flap Jacks, and not Cake. If it is proven that there is no problem with an infinite supply, nothing is lost. The benefit is that we get best of both worlds, and we create an insurance policy that guards us against the event that there are any unforeseeable problems with an infinite supply. And we incentivise sellers to hold.

Furthermore, Cake now has value because it is scarce, and because it's rewards would be different. Since the Cake supply would now be fixed, the Syrup rewards would be better than Icing Sugar rewards. Icing Sugar supply and the number of stakers will continue to grow, while in Syrup there is a maximum number of stakers. That translates to better APY. This creates more value for Cake, while at the same time not minimizing the value of Flap Jacks.

Early investers are rewarded with a scarce and valueable token that gives them access to special pools. At the same time nothing is taken away from late investors. Capped coiners get what they want, and uncapped coiners get what they want. Coin price is stabilised. A stabalised price gives investors confidence to invest and hold. Giving the project a decent chance to succeed. Winning all around.