gravity

Prop 142: Reduce minimum inflation and tune inflation parameters

The goal of this proposal is to set a more active issuance policy for Gravity Bridge. Where the community actively works and passes futures proposals to dial in the minimum viable issuance of new Grav for chain security. The CosmosSDK mint module adjusts inflation up or down between a configured minimum and maximum value based on a bonding target. This proposal

  • Leaves current inflation unchanged
  • Leaves the maximum rate of inflation at 7%
  • Changes the bonding target from 38% -> 42% to account for inflation reducing the relative size of the community pool
  • Sets the minimum inflation from 4% -> 1%
  • Modifies the maximum rate of change from 0.83% per month -> 8.33% per month

What this means is that within a month of proposal passing Grav inflation will be set at 1% But this is not intended as a final fixed number. If 65M or more Graviton are unbonded (bringing us below the new 42% goal bonded target) inflation would quickly return to 7%. If 1% issuance is found to be too low to maintain chain security another proposal should be submitted to raise the value.