What if Polkadot had 10% deflation instead of inflation?

DOT is “software” is a useful legal narrative, but that is a very different thing to the reality of the role DOT has in practice.

DOT is attempting to be money as it is at the core economic asset of a sovereign network economy. If it weren’t sovereign then the Web3 proposition would be moot - which it may well be - only time will tell.

In this sovereign network economy, DOT is attempting to fulfil the three principle characteristics of money for a select collective of participants:

  • medium of exchange (contributors paid in DOT)
  • unit of account (services priced in DOT)
  • store of value (accrues long term value through the provision of MoE and UoA)

Try as the Polkadot / Parity team might, you cannot market and position Polkadot in the same way you might with other SaaS propositions - it’s impractical, myopic and detached from reality.