Blog

Proposing a Shift: Lowering Inflation for a Sustainable Future

22 Dec 2023

2 min read

Proposing a Shift: Lowering Inflation for a Sustainable Future

In the dynamic world of decentralized networks, adaptability is key. Over the past months, discussions within the Secret community have revolved around a crucial topic: the inflation rate of Secret Network.

Proposal emerged from these conversations—a call for a vote to temporarily adjust our current inflation rate to reduce inflation from 15% to 9%. This is only the first step in a longer term discussion around adjusting Secret's tokenomics.

Current inflation rate stands at 15%, but the proposal suggests a reduction to 9%, a sentiment echoed by SCRT Labs, Secret Network Foundation, and many community members.

This proposition aligns with the prevailing discussions within the Cosmos ecosystem, including the recent proposal to lower inflation of ATOM. Notably, instances like the reduction in inflation leading to substantial value increases for assets like JUNO highlight the potential positive impacts of such adjustments.

Inflation and Value Preservation

Lowering inflation is a strategic move to preserve the value of SCRT. Historically, higher inflation rates have been associated with the depreciation of token value. By reducing inflation to 9%, this proposal aims to make SCRT more attractive for long-term holding, fostering a sense of value preservation within the community.

Balancing Rewards for Long-term Sustainability

A lower inflation rate safeguards against the risk of over-saturation in the market with tokens. This adjustment ensures that staking rewards remain attractive without compromising the intrinsic value of SCRT. The goal is to establish a sustainable equilibrium that benefits stakeholders over the long haul.

This graph shows the projected SCRT token supply with an inflation rate of 9% (red) compared to 15% (blue).

Network Security and Decentralization

Inflation serves as a mechanism to incentivize staking and, consequently, secure the network. Striking a delicate balance is crucial to prevent centralization issues. Excessive inflation may empower large validators disproportionately, posing risks to decentralization. Lowering inflation to 9% promotes a more equitable distribution of tokens, fortifying network security.

#most important

Share article

Earn rewards while keeping up with the latest news

Register on our platform, complete tasks, and earn!

Go to the platform

Receive notifications

We recommend it for you

  • Injective governance. Proposal №469

    13 Dec 2024

    LEARN MORE
  • Osmosis governance. Proposal №876

    13 Dec 2024

    LEARN MORE
  • Likecoin governance. Proposal №87

    11 Dec 2024

    LEARN MORE
  • Cheqd governance. Proposal №57

    11 Dec 2024

    LEARN MORE
  • Osmosis governance. Proposal №875

    11 Dec 2024

    LEARN MORE
  • Cheqd governance. Proposal №56

    10 Dec 2024

    LEARN MORE
  • Looking for more?

    Our Blog offers a wealth of articles and videos Click to visit Blog

    VISIT BLOG

We are in touch

Technical issue

Are you experiencing an issue with our validators or website? Let us know and we will address it right away.

Collaborate with us to secure networks, earn staking rewards, educate community members, and more. We want to work with people passionate about staking and the future of decentralization.

Feedback

Do you have any comments on how we can improve? Share your ideas and thoughts about our products and services.

Jobs

Join us in building a decentralized future. Send us your resume, which position you are applying for, and a short introduction of yourself.

Contact us

Let us know how we can help and we will get back to you as soon as possible.

shark - postman

We read all your feedback and suggestions. Many of your ideas for development become our tasks - you can see their implementation here

Updates history