Long-term incentives and Celo's deflationary model

The documentation states that CELO’s total supply is capped:

A total of 400 million CELO will be released for epoch rewards over time. […] It has a fixed total supply and in the long term will exhibit deflationary characteristics like Bitcoin.

If that is the case, the question arises how block producers are being incentivized long-term, especially since EIP1559 is implemented which burns the transaction fees.
Will minting CELO completely stop or will minting stay below threshold newlyMinted ≤ burnedCELO ?

Hello and thanks for the post!

Wanted to add some clarification, we have a gas pricing inspired by EIP1559, but AFIAK, the network doesn’t burn CELO for transactions fees. More here on how gas price is calculated.

Even if miners get paid some transaction fees, there is a strong risk of reorgs due to fees and MEV. How would the Celo protocol prevent that?

Paper: “On the Instability of Bitcoin Without the Block Reward”