Prop 23: Increase Governance Proposal Minimum Deposit and Set Staking Inflation Rate
1. Background
This proposal aims to strengthen the integrity of the governance process by increasing the minimum INIT token deposit required to create a governance proposal and push it into the voting period. This serves to reduce spam and ensure that only well-supported and meaningful proposals reach the voting stage. The previous parameters were established to facilitate an easier setup and configuration process ahead of the mainnet launch.
Additionally, this proposal will set the Staking and Enshrined Liquidity inflation rate to 5%. 25% of the total INIT supply is allocated to Staking and Enshrined Liquidity, with this parameter 5% of this will be released each year, or 1.25% of the total supply.
2. Parameter Changes
| Parameter | Current Value | Proposed Value |
|---|---|---|
| min_deposit | 10 INIT | 10,000 INIT |
| expedited_min_deposit | 11 INIT | 100,000 INIT |
| emergency_min_deposit | 12 INIT | 200,000 INIT |
| release_rate | 0.07 | 0.05 |
All proposed changes are in accordance with Initia's governance process and will be automatically applied by the chain once the proposal passes and the voting period concludes.
3. Rationale
The goal of the proposed value are to increase the cost of submitting a governance proposal and entering it into the voting period to a value that
- is difficult and unlikely for would-be spammers or potential malicious actors to be able to acquire or will be willing to use
- disincentivizes low-quality, impulsive, and generally unnecessary governance proposals from being submitted
This change aims to ensure efficient governance participation and uphold the credibility of the proposal process in the Interwoven EconomyAdditionally, this proposal sets the Staking and Enshrined Liquidity inflation rate to the default value of 5%. This value ensures there is enough inflation provided as incentive to stake and secure the L1.