We just raised a proposal of the new Inflation Model. You can now 1) Comment, and 2) Vote on the proposal.
14 Oct 2022, 11:11
👋 We just raised a proposal of the new Inflation Model!
You can now 1) Comment, and 2) Vote on the proposal.
This proposal is in discussion stage and the vote will NOT take effect in our execution. However, we we will take careful consideration of the voting result along with the comments and feedback you give. We recommend giving comments there rather than TG chat because it is more visible & trackable.
Q: What does the proposal says?
A: In short, the team proposed an inflation model to fuel the staking mechanism (POS) in the Litentry Network. The proposal targets:
1) a 1.5% annual inflation rate in the first 1,296,000 blocks(~= 6 months), 0.5% goes towards incentivizing collators, 1% is for users that stake their LIT tokens
2) a 2.5% annual inflation rate After block 1,296,001 will be applied, 0.5% goes towards incentivizing collators, 2% is for users that stake their LIT tokens
Q: What changed since the last proposal?
A: To offset the market impact brought by inflation, 568,750 LIT will be burnt from the ecosystem wallet each quarter and continues for eight quarters (two years).