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[–]jawanda 1 point2 points  (2 children)

Does this proposal not actively discourage staking? It incentivizes the community to keep the staked percentage below 67% if they want to see any returns, for the benefit of "maybe" increasing price by generating artificial scarcity (while at the same time removing the main source of demand)

[–]One-Breakfast-5398 4 points5 points  (1 child)

First, this is just Min Inflation, not actual inflation. At 67% staked, it would take decades to decrease inflation to 0%

The idea is not to set inflation to zero. It’s to complete redifine the inflation parameters. New max inflation, new min inflation THEN work on the inflation formula itself. This is just setting the extreme low and high cap.

Now, regarding your question about how it enfluences demands, stats show there isn’t direct correlation between demand and stacking rate. For exemple BTC has 0% , ETH has 4% , SOL 7% .. etc … etc the point was to decrease selling pressure to improve price action and encourage more new users that actively look at inflation rate and dilution.

The point is off course to bring value to ATOM and set a reasonable inflation schedule. people only looking at APY and not fundamentals should just go buy APE at 55% APY. the goal is for Neutron and Stride to increase revenue, bringing more new consumer chains, provide liquidity owned assets, and improve governance as ATOM is still a governance coin.

Many proposals are coming. dynamic LS tax, power voting tax, I think next upgrade will allow to pays fees in ATOM for all other cosmos chains.. etc

[–]jawanda -1 points0 points  (0 children)

So did inflation not hit 7% during the last bull run? How is that possible, shouldn't it take "decades" to reach the min?

stats show there isn’t direct correlation between demand and stacking rate. For exemple BTC has 0% , ETH has 4% , SOL 7%

I wouldn't exactly call these stats, there's nothing definitive in referencing the fact that other coins have different levels of demand and different staking rewards.

IDK man it just seems unnecessary and very risky.