PIP-5: Update Paloma Inflation Parameters for TestNest-12

PIP Name: PIP 5 - Update Paloma Inflation Parameters for Testnet-12

Status: Proposed

Author(s): @LARRY

Type: Parameter Change

Discussions-to: PIP-5: Update Paloma Inflation Parameters for TestNest-12

Created: 10/20/2022

Simple Summary

This proposal updates the inflation parameters from the default Cosmos SDK parameters for the long-term stability of the network.

Abstract

Lower inflation parameters of the Paloma Chain for Testnet-12 so that we have the same inflation parameters that the flock enjoyed on Testnet-11.

Motivation

Paloma needs a good tokenomics model that balances inflation/emission, validator incentives and other token holders’ valuation stability. The objective of this parameter change is to update the economics of Paloma so that the focus on fee revenue generation from compute and storage activities becomes a priority for validators on Paloma.

Specification Overview

Update of the Cosmos-SDK parameters as outlined in the technical specification below.

Technical Specification

Paloma Proposed Parameters: Lower Inflation Parameters from Cosmos defaults.

Cosmos SDK mint:
InflationRateChange: 0.04
InflationMax: 0.07
InflationMin: 0.03
goal_bonded: 0.670000000000000000
Max supply: infinite

How to Vote on the Proposal

palomad tx gov vote 1 yes \
--chain-id paloma-testnet-12 \
--from="$VALIDATOR" \
--fees 400ugrain \
-b block
-y

Rationale

Cosmos-SDK parameter changes for inflation are standard and should make this update straightforward. No chain restart will be required.

About Paloma

Paloma Protocol is a Cosmos-SDK blockchain protocol custom-built for omnichain communication that allows permissionless controls of any contract on any chain. Built by Volume, Paloma delivers the world’s first intelligently scheduled and automated smart contract transaction execution for the Cosmos ecosystem. The protocol enables developers to remotely control the transmission of value without the need to wrap, bridge tokens, or trust validators with their digital assets. Led by founding members of Sommelier, Paloma is building the primary communication layer of Web3.