Voting period
100.00%
# Reduce annual token inflation from 8% to 5% From march to june, we have experienced a great staking APR of about 70% per year. This was necessary at a time when Aura mainnet needs to bootstrap users from BNB chain to migrate their tokens to mainnet. However, this created tremendous price pressure from selling staking rewards. This also created difficulty to build up other DeFi products on Aura as staking APR is too much so that there will be less incentive for users to participate in DeFi. For this reason, we propose several actions to improve this situation: 1. There will be significant amount of Foundation Delegation from Aura Team vesting account to the current network validator set (~100M Aura). This is to make sure we can increase network bonding rate to dilute the staking APR from retails and VCs. However, all staking rewards from the Aura team wallet will be periodically transfer to Community Pool to be managed by governance. 2. We propose to reduce annual token inflation to 5%, this will keep the annual staking APR about less than 20% so we can have similar APR with other Cosmos based chain e.g. Atom, Injective, Osmosis, etc. This will pave the way for new DeFi protocol be deployed on Aura in the next quarter.
Submit time: 29 Jun 2023, 10:14
Voting period
100.00%
Reduce annual token inflation from 8% to 5%
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