Will ZIL Staking Increase Inflation and Dilute Supply?

In my discord server I received a question from ZIL who was concerned as to how Staking would effect the ZIL supply and inflation. Are holders now going to be diluted by the increase in supply? Will inflation increase?

The question read, "I’m curious as to where ZIL staking rewards come from, as we do not have an infinite supply and how long it will last before at max and then what. How does staking work and how long can it exist in limited inflation? 10% on 12 billion is 1.2 billion a year that seems like it will run out quickly if they are created". 

My Response 

To respond to this question, the maximum supply of ZIL is staying fixed at 21 billion ZIL in an effort to prevent an increase in inflation or the dilution of supply. The maximum amount of ZIL rewards is roughly 72 million ZILs per year. A maximum of 700m ZIL will ever be locked in staking. 10 seed nodes staking 70m ZIL each.  

Current ZIL Supply 

Circulating Supply = 10,048,029,789 ZIL

Total Supply = 13,339,496,942 ZIL

Max Supply = 21,000,000,000 ZIL

Conclusion 

So with the maximum amount of rewards from staking capped at around 72 million ZIL per year, then you can see how staking can last for another while at 10% ROI per annum, as circulating supply and total supply are still only roughly half of max supply. Meaning increased inflation can not occur as max supply is not increasing.