SIMD-0199: Inflation

[anselsol]

[🔥] Taken to conversation for now: #200

[levicook]

First pass, quick thoughts:

The 50% threshold could cause back-and-forth inflation adjustments. Any thoughts on how to attenuate the oscillations? A general case stabilizer is probably worthwhile to make it easier to predict emission.

15% per epoch seems aggressive / volatile too.

Starting at 4.5% is a significant change from current rates too.

[anselsol]

@levicook that's a very good question. Cosmos has this kind of super complex formula to stabilize oscillations depending on the multiple threshold (not just 50%) - we need to learn more about the implications to be able to reply to this (source : https://forum.cosmos.network/t/proposal-48-accepted-inflation-rate-change-correction/4834)

Right now the curve (you can find it here) goes to 1.5% in 6 years. The idea was to go there much quicker to stabilize the total supply.

From what we could gather a big part of the staking APY do come from fees right now (and the 50% fees burn will soon be removed).

The current inflation is around 4.8%. I think the staking APY (maybe you're talking about this) takes into account auto compounding + base tx fees + priority fees (+ jito tips if running Jito).

Let's take this to the the discussion tab 😅 I'll copy this in the first comment