Hey Giotto,

I can agree with one of your underlying points, we need to keep watch on inflation.  In this case there's focus on issuance but there's also the angle of disposal/burning of tokens and what is the overall net effect on inflation.   

To echo some of the other responders and in my own words, there's just too many significant upcoming changes to make this determination right now.

Regards,
Will | Paradox

I really like the 2.1 billion fixed supply as it immediately cuts inflation by half (1.4 billion x 10% = 140 million, is cut to 70 million, 10% x 700 million).

In Gavin Wood's recent interview he mentioned the Bitcoin fixed supply model as a possibility, "it provides a nice very shallow curve, going from the rewards that are happening at the moment, into a fixed final amount model", and "I do see a serious upside, which is that you've got fiscal certainty".
https://www.youtube.com/watch?v=vlByL1psSB8

And Gavin mentioned that Jam's final draft is likely to be ready by end of 2024, and perhaps will launch by summer 2025.

I also like the bitcoin vibe (2.1 billion), being that it is the most valuable and secure blockchain.

A correction to the 30 year projections by giottodf, the numbers should read M for millions not K for thousands.

One caveat is that I would like the fellowship to be able to increase the inflation if necessary, for the purpose to incentivize staking, as Polakadot's security is first priority.

Otherwise a big AYE for me

Bring on Polkadot's first halving, and as Gavin Wood said, 'a serious upside' due to 'fiscal certainty'.

**The concept is well-conceived and straightforward to comprehend.**

I also agree that there should be a discussion about reducing inflation and the upgrade that allows to set the inflation parameter through governance is exactly what should trigger a proper evaluation of the inflation / staking parameters. As Al already pointed out, we should be mindful about the fact that Polkadot does derive a significant share of its economic security from rewards to validators (i.e., their future rewards). But, that does not mean that there is no room to lower it.

This also taps into the conversation about how much % of the inflation should be fixed to go to the Treasury and how we want to set the ideal staking rate in the absence of parachains.

To summarize, we should and will have a discussion about lowering inflation, but it should include all the factors listed above.

I am currently busy teaching at the PBA but I am planning to give some input on this topic soon which then hopefully triggers some discussion around it.

The inflation is currently excessive and this turns off a lot of potential new entrants A good solution could be to have a fixed supply and then use as inflation a certain percentage of whatever is left I suggest using as total maximum supply 2.1 billions because it's a funny number and it's related to Bitcoin Let's assume at the moment we have 1.4 billion tokens, that means that we have 700 million left to use as rewards I think a good number for inflation could be 10% of whatever is left, so on the first year the staking rewards distributed will be 70 millions (10% of what is left) and then on the next year because only 630 millions will be left only 63 million will be distributed, etc. So we never run out of tokens because the amount distributed always get less and less but we have an absolute total cap and this probably make polkadot more appealing for a lot of people Details: https://x.com/giottodf/status/1783009866631811341

Inflation is too high, which stops new people from joining. A solution is to have a fixed supply and use a certain percentage of what's left as inflation. The total maximum supply could be 2.1 billion, which is related to Bitcoin. If we have 1.4 billion tokens now, that means we have 700 million left to use as rewards. A good number for inflation could be 10% of what's left. So, in the first year, the staking rewards distributed will be 70 million (10% of what's left). In the next year, only 63 million will be distributed because only 630 million will be left. This way, we never run out of tokens, and the amount distributed always gets less. This might make Polkadot more appealing to people.

remark

Rejected

Submitted

DecisionDepositPlaced

DecisionStarted

wish_for_change

WHO: Proposal author

WHAT: Proposing a fixed supply and using a certain percentage of leftover tokens as inflation for staking rewards in Polkadot

PRICE/TIMEFRAME/RESOURCES: Not specified

Reducing inflation - VOTE NAY

root

whitelisted_caller

staking_admin

treasurer

lease_admin

fellowship_admin

general_admin

auction_admin

referendum_canceller

referendum_killer

small_tipper

big_tipper

small_spender

medium_spender

big_spender

Origin able to dispatch a whitelisted call.

Origin for signaling that the network wishes for some change

Origin able to cancel slashes and manage minimum commission.

Origin for spending up to 10,000,000 DOT from the treasury as well as generally administering it.

Origin for managing the composition of the fellowship.

Origin able to spend around 250 DOT from the treasury at once.

Origin able to spend around 1,000 DOT from the treasury at once.

Origin able to spend around 10,000 DOT from the treasury at once.

Origin able to spend around 100,000 DOT from the treasury at once.

Origin able to spend up to 1,000,000 DOT from the treasury at once.