shentu

Prop 50: Adjust Community Pool Mint Allocation to 10%

Summary

This param-change proposal aims to adjust the community pool's block reward allocation from its current dynamic calculation (approximately 11.42%) to a fixed 10% (0.10) per block. This change is necessary following the v2.15.0 upgrade, which removed the old minting mechanism that previously determined the community pool's share.

Parameter Change

The proposed change affects the distribution module.

Parameter: community_tax

community_tax: Defines the percentage of block rewards (including transaction fees and inflation rewards) that is allocated to the Community Pool before the remainder is distributed to validators and delegators.

The community_tax has these key characteristics:

  • The value must be greater than 0 and less than or equal to 1.00 (100%).
  • Its adjustment requires on-chain param-change governance proposals.

Parameter and Proposed Value

Module Parameter Current Value Proposed Value
x/distribution community_tax 0.00 (0%) 0.10 (10%)

If the parameter is set to:

  • 0.1142 → Approximately 11.42% of minted rewards go to the Community Pool (based on community_pool / total_supply).

  • 0.10 → 10% of newly minted rewards go directly to the Community Pool.

Background

Our chain's v2.15.0 upgrade involved the removal of the previous minting mechanism that implicitly determined the community pool's allocation based on the ratio of community_pool / total_supply. This older calculation resulted in a dynamic share, currently approximately 11.42% per block (e.g., 16886440881570/147854481996479×100%=11.421%).

With the deprecation of this old minting logic, the community pool no longer has an automated allocation percentage from new token issuance. This proposal introduces a fixed and explicit allocation for the community pool.

Rationale for Proposed 10% Allocation

  1. Ensuring Consistent Community Pool Funding: The v2.15.0 upgrade necessitated a new method for the community pool to receive funds from new token issuance. A fixed percentage ensures a predictable and stable income stream for community-driven initiatives.

  2. Streamlined Allocation Mechanism: Transitioning from a dynamic ratio to a fixed percentage simplifies the understanding and management of community pool funding.

  3. Aligning with Network Objectives: A 10% allocation provides a balanced approach, adequately funding the community pool for future developments and grants without imposing an excessive burden on other reward distributions.

Conclusion

Adjusting the community pool's block reward allocation to a fixed 10% is a necessary and prudent step following the v2.15.0 upgrade. This change ensures consistent funding for community initiatives, simplifies the minting process, and establishes a clear, sustainable mechanism for the community pool's growth.

Voting Options

  • YES – Supports the proposed parameter change, setting the Community Pool's block reward allocation to 10%.

  • NO – Chooses not to take a position, due to a conflict of interest or a wish to participate without expressing a preference.

  • ABSTAIN – Chooses not to take a position, due to a conflict of interest or a wish to participate without expressing a preference.

  • NO WITH VETO – Opposes the proposed parameter change on the grounds it is (1) irrelevant to the chain, (2) malicious and or unjustly harms minority interests, or (3) violates chain governance rules and or norms.