Dear Polkadot Community, I’d like to initiate a discussion on a potential adjustment to Polkadot’s inflation model. This change aims to ensure a sustainable influx of funds into the Treasury in the foreseeable future. Here, I’ll give a brief explanation of the current model, clarify the problem wit…

Plan for the worst, hope for the best. I think it would be worth outlining a bunch of assumptions and modelling a bunch of scenarios rather than just postponing until a potential problem becomes an actual problem, which is then when fate dictates proceedings. Some factors to consider on the skepti…

You should also include the outflow from burns to your calculation. Doing so means that the Polkadot Treasury had an outflow of 16m DOT in total up until now. In addition, I don’t think the early time (even 1-2y?) are very representative for the outflow. I am currently arguing from an angle of keep…

This is an intriguing idea, however there is one core topic that is lacking in this discussion: security. I find it very ironic that when I suggested staking Treasury funds the ecosystem cried about it undermining the underlying assumptions of proof-of-stake, yet no one here seems to understand that…

As we all know, treasury funds, which are exclusively in DOT, can depreciate rapidly. If, for example, someone utilizes 1M DOT from the treasury and sells it, it will cause the DOT’s price to fluctuate, subsequently influencing the treasury’s worth. Thus, an expenditure of 1M DOT at $5 not only sign…

At face value, this proposal seems to incentivize Treasury Funding over Network Security, which might be a slippery slope path to approach. Impacting nominators/validators might result in the depreciation of Treasury funding via USD price correlation (stakers selling and leaving the network), leavin…

[image] Ricosworks: As we all know, treasury funds, which are exclusively in DOT, can depreciate rapidly. If, for example, someone utilizes 1M DOT from the treasury and sells it, it will cause the DOT’s price to fluctuate, subsequently influencing the treasury’s worth. Yup. This is one of the…

[image] alice_und_bob: We have to assume that any value flowing into the treasury will eventually be spent, so we have to ask the question of how much the Treasury should reasonably spend. Personally I believe that 4x-ing the potential of the Treasury to spend right now is too much. Polkadot jus…

[image] lucasvo: Here’s how you could frame treasury spending: it’s basically Polkadot’s R&D, ecosystem development and marketing budget. Perhaps even simpler than that, the treasury exists to bootstrap demand for coretime and all spending can be assessed through that lens. At some point spen…

In two words @Rich , “I agree”. In the blockchain landscape, we often gravitate towards the promise of decentralised freedom - Bitcoin exemplifies this. Despite its seemingly archaic tech, its immutability has proven to be a strength, establishing a gold standard of trust. However, the blockchain e…

[image] lucasvo: it’s basically Polkadot’s R&D, ecosystem development and marketing budget. Agree here - I think an important part of this is for us to collectively agree “budgets” for these categories… what spend do we see as essential to ecosystem growth and how much do we want to allocate …

Adjusting the current inflation model to sustain Treasury inflow

Governance

rich July 14, 2023, 8:21pm 37

Yup. This is one of the primary reasons for this work Introducing an alternative financing strategy, structure and partnership for maximising the potency of Kusama's treasury

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Adjusting the current inflation model to sustain Treasury inflow

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