Prop 122: [Proposal]Proposal to Implement the CONX Dynamic Deflation Model
1. Summary
This proposal seeks approval to adjust the base transaction fee of the CONX mainnet to 1 XPLA and implement a Dynamic Deflation Model in the mainnet core.
The model is designed to increase token burning during periods of low network activity and expand Community Pool funding during periods of high network activity.
2. Confirmed Parameters
| Parameter | Initial Value |
|---|---|
| Base Transaction Fee | 1 XPLA |
| Gas Price | 10,000,000,000,000 axpla |
| Settlement Interval | 100,000 Blocks |
| Minimum Fee Amount | 69,444 XPLA |
| Maximum Fee Amount | 3,472,222 XPLA |
| Dynamic Deflation Pool Allocation | 80% |
| Delegation Reward Allocation | 20% |
These parameters assume that the CONX mainnet produces approximately 14,400 blocks per day and that each transaction pays a fee of 1 XPLA.
- 69,444 XPLA corresponds to approximately 10,000 transactions per day.
- 3,472,222 XPLA corresponds to approximately 500,000 transactions per day.
- As 100,000 blocks correspond to approximately 6.944 days, the daily transaction activity levels are converted into Fee Amount values for one settlement cycle.
3. Transaction Fee Distribution
Transaction fees collected in each block will be allocated as follows:
- 80% to the Dynamic Deflation Pool
- 20% to Delegation Rewards
The portion allocated to Delegation Rewards will be distributed through the existing reward distribution structure.
The amount accumulated in the Dynamic Deflation Pool will be settled every 100,000 blocks and allocated between token burning and the Community Pool based on the total Transaction Fee Amount collected during the settlement cycle.
4. Dynamic Deflation Mechanism
The total Transaction Fee Amount accumulated during each settlement cycle will be used as the measurement of network activity.
- If the total Transaction Fee Amount is equal to or below 69,444 XPLA, the maximum burn ratio will be applied to the Dynamic Deflation Pool.
- If the total Transaction Fee Amount is equal to or above 3,472,222 XPLA, the Dynamic Deflation Pool amount will be allocated to the Community Pool.
- Between the minimum and maximum values, the allocation ratio between burning and the Community Pool will be adjusted automatically according to network activity.
Existing Community Pool balances will not be subject to burning. Only the transaction fees newly allocated to the Dynamic Deflation Pool after the activation of the model will be included in settlement.
5. Governance Parameter Changes
The following parameters will be adjustable through Governance Parameter Change proposals without requiring an additional mainnet software upgrade:
- Base Transaction Fee and Gas Price
- Settlement Interval
- Minimum Fee Amount
- Maximum Fee Amount
- Dynamic Deflation Pool allocation ratio
- Delegation Reward allocation ratio
- Burn and Community Pool allocation conditions between the minimum and maximum values
6. Expected Benefits
- Automatic alignment between network activity and token burn policy
- Greater reduction of the XPLA supply during low-activity periods
- Increased Community Pool funding during high-activity periods
- Transparent and verifiable block-based settlement
- Flexible tokenomics management through governance