Prop 539: Expedited Proposal: Thirdening Implementation

This is an Expedited Proposal that would implement the planned Halvening and Thirdening combination as a parameter change due to an error with the timing of these in previous proposals.

Details

The Thirdening event has not occurred on June 19th as planned in the recent proposals 534 and 535.

These proposals were based around the Thirdening occurring on epoch 731, however, as Osmosis did not have any inflation for the first epoch of its existence, the Thirdening instead would have occurred on epoch 732.

This led to the proposals being mistimed compared to the test environment, which did not have this first epoch of no inflation, and the Thirdening not occurring as expected.

As the second proposal, 535, lengthened the thirdening period there will be no Thirdening for another year unless a parameter change is implemented, leading to sustained high inflation, the opposite intention of these tokenomics changes.

This proposal is an expedited proposal to remedy this and implement the expected inflation reduction as soon as possible.

As an expedited proposal, this proposal passes as long as it receives 66% of voting power in favour within 24 hours, if this is not achieved then it reverts to a normal proposal.

If this proposal passes, the double thirdening event can be expected on Wednesday 21st June and a future proposal will be needed to lengthen the time between Thirdenings again, a resubmission of Proposal 535.

The impact of this delay to inflation reduction is an effective increase of the maximum supply of OSMO by two-thirds of 1 day's emissions at the current rate or about 365,297 OSMO. This is not dealt with as part of this proposal.

To confirm that these parameter changes would implement the thirdening on the next epoch after passing and offset future thirdenings by the time delay these changes have been tested on localosmosis with the following results: https://docs.google.com/spreadsheets/d/1CdGuyZb9uuR6viuzO4CaT37Sf_1aC3tz0O8bnk7tEyg

Commonwealth Thread:https://commonwealth.im/osmosis/discussion/11769-expedited-proposal-thirdening-implementation