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…

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 …

Hi @asteeber Thank you for your patience, I was closely involved with the PBA at UC Berkeley and did not have time to follow up. Also, thanks for expressing your concerns! Minting tokens to Treasury from inflation indeed does not offer any security benefit compared to having the Treasury stake par…

Thanks for the excellent response. I think this is a perfect experiment for Kusama, especially since we don’t know exactly how nominators will respond to slightly decreased returns. I think you have me convinced as far as this method is concerned - it is indeed simpler. Ultimately it would be reall…

As it’s been mentioned in tandem to this conversation - posting here the link to @jonas RFC regarding coretime sales being burnt: Burn Revenue from Coretime Sales by jonasW3F · Pull Request #10 · polkadot-fellows/RFCs · GitHub

@jonas has the W3F modelled coretime income? I’m assuming so given @AlistairStewart ’s note about expecting revenue to be slow to begin with. Could you share this analysis - it would be helpful to set expectations and also focus people’s attention on how treasury spending can be focused towards the…

This depends on the actual implementation of the pricing mechanism in Coretime sales. Afaik, this hasn’t been finalized yet.

You note in your coretime burn RFC: Coretime revenue often appears to be inversely correlated with times when the Treasury should increase spending. During periods of low Coretime utilization (indicated by lower prices), it’s important for the Treasury to spend more on projects and endeavours to i…

I agree with @jonas ’s opinion on having a stable inflow for Treasury. As mentioned by the others in the discussion, we currently have enough fund in the Treasury; however, the fundamental purpose of the Treasury is to fund the projects that can grow the ecosystem. We should always have more than en…

Adjusting the current inflation model to sustain Treasury inflow

Governance

jonas July 25, 2023, 6:48pm 46

exposing the respective parameters to governance for fine-tuning is part of the proposal, yes

Kusama Treasury Follow-up Analysis: Continued Budgeting Incompetence

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Adjusting the current inflation model to sustain Treasury inflow

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