Prop 38: Set the maximum inflation rate to 10%

This proposal suggests reducing the max_inflation parameter from 14% to 10%, resulting in CTK's current inflation rate being set at 10%. Adjusting the inflation schedule has been an important topic for the Shentu community over the past years, which is why this proposal is being voted on.

Context: Dynamic Inflation Model Shentu currently implements a dynamic inflation rate that ranges between a floor of 4% and a ceiling of 14%. The rate is pegged to a bonded or staked ratio of ⅔.

If less than ⅔ of all CTKs are staked, the inflation rate increases in order to incentivize staking aka. securing the chain. The velocity at which the inflation rate adjusts on a block-by-block basis is set by the inflation_change param and based on the following formula: (1 - [bonded ratio]% / 67% ) * 1 = [inflation rate change]% per year.

As of the time of writing, the bonded ratio of CTK is 41.67%, which means it is below the threshold of ⅔. As a result, the previous inflation rate is currently increasing annually, and the current inflation rate has reached its maximum of 14%.

Due to Shentu's historically higher inflation compared to its peers, this has damaged the perception of CTK's monetary premium. Reducing the inflation rate can boost investors' confidence in Shentu. Lowering inflation is an option in the near term.