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The x/mint Module and understanding the Inflation Rate Calculation

Governance Meta4 posts1,153 views20 likesLast activity Jan 2024
GO
GovmosOP
Jan 2024 15

CONTEXT: We have seen recently a series of on-chain proposals regarding the reform of certain inflation related parameters. We were very surprised to see among the comments a large share of users that didn’t really understood the formula behind. On this context we have provided our initial negative feedback on these proposal on this post , highlighting the fact that the logic would have guided us to discuss the inflation reform as a fully comprehensive formula debate BEFORE voting on the adjustment of certain parameters alone. The reasoning is quite simple, to vote confidently on such a critical matter of the blockchain tokenomics, we feel like the users should have been informed correctly, the most professional way to acheive this would have been to build a mathematical model to showcase the effect of each parameters and let the users play around with it to understand their influence over inflation. ANALYSIS: It is worth remembering everyone here how this formula works: ``` NextInflationRate(params Params, bondedRatio math.LegacyDec) (inflation math.LegacyDec) { inflationRateChangePerYear = (1 - bondedRatio/params.GoalBonded) * params.InflationRateChange…

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VI
vixcontango
Jan 2024 2

Yeah, it does feel like a lot of posters don’t understand how the inflation formula in Cosmos works. Thanks for posting this.

GU
Guinch_Roze
Jan 2024

Is there at least one official document, whether on the official Cosmo hub website or the white paper, on the operation of this inflation/staking mechanism income, etc.? think no because nobody can explain iy

GO
Govmos
Jan 2024 3

It’s public knowledge on the Cosmos SDK, the source was provided in the post:
x/mint | Explore the SDK

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