Prop 28: Proposal to Adjust Annual Inflation Rate from 6% to 5% to Strengthen Long-Term Sustainability

This proposal suggests reducing the annual inflation rate of the Shido Network from 6% to 5%.

The primary objective is to enhance long-term economic sustainability while maintaining a balanced incentive structure for validators and delegators. A lower inflation rate will help reduce constant sell pressure caused by newly emitted tokens, improve scarcity, and support healthier price dynamics.

Rationale:

• Reduce ongoing sell pressure from inflation rewards
• Improve token scarcity and perceived value
• Strengthen long-term sustainability of the network economy
• Maintain competitive and fair staking incentives
• Align emission model with mature and stable blockchain ecosystems

Impact: Lowering inflation to 5% is expected to create a more stable and predictable token economy, benefiting long-term holders, validators, and the broader ecosystem.

Risks:

• Slight reduction in short-term staking rewards
• Potential need for future adjustments based on network growth and fee dynamics

However, this adjustment is considered a balanced approach between sustainability and incentives.