Regarding inflation, the total number of coins distributed over a set period of time does not affect the scarcity of an asset. In this regard, When viewed from outside the system there is no difference between 50K YFI distributed over 5 years and 300K or 1Million YFI distributed over the same time period. The only thing that changes is the distribution of who has the tokens within the system.
In this sense high inflation of a supply capped asset is equivalent to low inflation of a supply capped asset if one assumes the marketcaps will equal out eventually.
As another example, if Bitcoin had a 21 billion supply cap and were distributed along the same curve, it would make no different to the overall value (marketcap) of Bitcoin, although individual bitcoins would be worth 1000x less
For anyone who farmed YFI and plans on continuing to farm YFI, the difference between high issuance and low issuance (in relation to the amount that has already been minted) should be considered in regards the the following scenarios:
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Low issuance but low usage of yEarn products and only current holders farm it means current holders are not diluted but don’t benefit from a growing system.
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High issuance but low usage of yEarn products and only current holders farm it means current holders are not diluted but don’t benefit from a growing system.
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Low issuance and high usage overwhelmingly benefits current holders but risks turning public opinion against the project and therefore hurting current holders.
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High issuance and high usage dilutes current holders but benefits everyone because the system is growing.
In my mind, a capped supply schedule (or one with a very low tail inflation) with higher issuance relative to what has already been issued, is a safer long term path for the project and has minimal negative effects on stakeholders who are interested in continuing to use and yield farm with yEarn.