Quick update here:
I was trying out the proposed changes on testnet and noticed 2 important things which I didn’t realise before:
- The inflationRateChange parameter has to be between 0 and 1, so the proposal of having it set to 2.5 to increase the speed of inflation is impossible.
- The halving was programmed to change minInflation from 25% to 12.5% and maxInflation from 45% to 22.5%. With these parameters, at the time of this halving (and actually every following halving too), there would actually be an immediate and sudden shock to inflation from 25% to 22.5%. A design oversight in my opinion, where to me it would make more sense to keep things gradual at all times.
Since the staking ratio is high enough to make inflation drop quite quickly, I don’t think either of these are a big issue, so I suggest to move forward by doing the following (a slightly more conservative approach than originally proposed above):
Inflation Min = 12.5%
Inflation Max = 25.0%
Inflation Rate Change = 1 (remains unchanged: the maximum value)
Blocks per year = 5259600 (= updated based on current average block time (~6 seconds)).
I will post the governance proposal for this on-chain in one of the next few days so we can at least keep the ball rolling on phase 1 and keep discussing on the other parts of the token economics improvement proposal.
As always, looking forward to hearing everyone’s thoughts and feedback!