Summary
This governance proposal seeks to fundamentally revise the inflation model of Gitopia's native token, . It presents a shift from the current maximum inflation rate of 35%, designed to halve every 2 years over 11 years, to a more sustainable framework. The new model advocates for an initial rate of 15%, with a planned annual decrement of 1%, eventually dwindling to zero over a 16-year period, while preserving the hard cap of 1,711,136,479 tokens.
## Background and Context
### Current Scenario
The existing inflationary mechanism, featuring a maximum rate of 35%, was conceived to stimulate early network engagement but casts a shadow on long-term sustainability.
### Proposed Amendments
- inflation Rate: 15%
- Annual Decrement: 1%
- Finalization Timeline: 16 years
## Objectives and Goals
1. Enhanced Sustainability: Establish a more resilient token economics structre.
2. Unaltered FDV Ratios: Retain the existing Future Dilution Valuation (FDV) allocations.
3. Extended Maturation Period: Allow for a prolonged timeline for token absorption in the market.
## Justification
Economic Resilience: A reduced inflation rate minimizes sell-off pressures from token miners and delegators, contributing to long-term value stability.
Upholding Community Contracts: The proposal ensures that FDV ratios remain unchanged, thereby sustaining community trust and previously established agreements.
Controlled Token Release: The elongated timeframe for reaching the hard cap ensures a calculated and market-friendly token release strategy.
## Impact Assessment
Economic Implications: The revised model anticipates a tempered yet reliable growth in token supply, thereby fostering economic stability.
Technical Requisites: Implementing this proposal would necessitate minor adjustments to the mint module parameters.
## Conclusion and Call to Action
This proposal is a strategic initiative aimed at aligning the inflation mechanics of Gitopia more closely with the objectives of long-term sustainability and community trust. We invite stakeholders to critically evaluate this proposal and actively participate in the discussion here. Your support and feedback are crucial for the successful implementation of this proposal.
Forum discussion: https://forum.gitopia.com/t/governance-proposal-reforming-the-inflation-policy-for-long-term-sustainability/563
## Governance Voting Options
Below are the choices available for voting on this proposal and their corresponding implications:
- Vote YES: By voting YES, you express your support for the revision of the inflation model.
- Vote NO: A NO vote signifies your disagreement with the proposed revision of the inflation model.
- Vote NO WITH VETO: Voting NO WITH VETO indicates that you view the proposal as irrelevant to Gitopia, a potential infringement on minority interests, or as a proposal that either violates or encourages the violation of the rules of engagement as defined by Gitopia. If votes cast under this option exceed a third of the total votes, the proposal will be rejected and all deposits will be burned.
- Vote ABSTAIN: By voting ABSTAIN, you are participating in achieving quorum while formally choosing not to express an opinion in favor or against the proposal.
