IRON will have a supply cap of 50M at launch and will be increased as we grow. Implications and lessons learned:
A cap prevents IRON supply from unnecessarily overinflating
Better control over IRON supply, and supply growth, minimizes unnecessary supply volatility
Since ICE is required to mint IRON, stability of IRON supply also prevents both positive and negative demand shocks for ICE in the short term.
Over-collateralisation is the main stability parameter. Others will include:
IronSwap integration: deposit LP tokens in an existing stablefarm to earn ICE rewards
In development as of 28 Aug: IRON Saving (single-staking product): Deposit IRON > earn ICE.
Governance will control the target interest rate of IRON Saving, which will help to control the amount of IRON in the market.