Prop 23: Aligning Coreum’s Tokenomics for Long-Term Sustainability

1.0 Context:

Since launch, Coreum’s tokenomics have allowed for a maximum inflation rate initially modeled at 20%. Following a reduction in block size, the effective inflation ceiling increased to 26%. As a result, total supply has grown from 500 million to over 810 million tokens in less than 3 years.

This places Coreum among the highest-inflating chains in the Cosmos ecosystem—more typical of early-stage or experimental networks. If left unchanged, this rate of expansion risks diluting long-term holder value, weakening market confidence, and misaligning incentives for sustainable ecosystem growth.

2.0 Proposal:

Reduce Coreum’s maximum inflation parameter from 26% to 14% through a community-governed, parameter-only change.

This adjustment would:

a) Restore a more disciplined and predictable monetary framework. b) Bring Coreum in line with best practices adopted by mature Cosmos chains. For example, the Cosmos Hub’s Proposal #848 reduced its maximum inflation from 14% to 10% to strengthen long-term sustainability. c) Support a healthier balance between validator/delegator rewards and protection against excessive dilution. Key Rationale

3.0 Supply Expansion:

A more than 60% supply increase in under 3 years is materially dilutive and not aligned with Coreum’s current level of maturity. Ecosystem Competitiveness: High inflation can discourage long-term holders, institutional interest, and strategic partners when other Cosmos chains offer more conservative, predictable issuance.

Maturity and Precedent: As Coreum evolves beyond its early growth phase, tightening monetary parameters is a natural step, consistent with how established networks refine their economics over time.

Market Signaling: A lower inflation cap signals long-term alignment, responsible governance, and confidence in Coreum’s fundamentals beyond inflation-driven yields.

4.0 Implementation:

a) Adjust the maximum inflation parameter from 26% to 14% via community governance. b) Maintain flexibility: the community can revisit and refine this parameter as network usage, security needs, and economic conditions evolve.

5.0 Conclusion:

A 14% maximum inflation rate remains competitive and provides strong incentives for validators and delegators, while protecting token holders from dilution and supporting broader ecosystem growth.

By recalibrating inflation now, the community reinforces Coreum’s commitment to sustainable growth, predictable tokenomics, and long-term value creation.

If this proposal passes, it represents clear community consensus in favor of reducing the maximum inflation parameter of the Coreum mint module from 0.26 to 0.14. We request that the Coreum Foundation and relevant maintainers update the inflation_max parameter accordingly in the next appropriate on-chain configuration change or software release, and publicly confirm completion to the community.