Is there any sentiment among the community that our inflation rate is too high? In the current zeitgeist inflation above some small amount is seen largely as a bad omen for the economy, and something to be avoided. I’m personally worried that this is scaring off potential immigrants. Obviously we s…

I am not the expert on this topic to make suggestions, but can provide a bit more explanations of status quo. Inflated tokens have two purposes: Staking reward Treasury I will leave the treasury part out. There are many discussions on how to improve treasury income mechanism. The primary reason…

[image] Barakion: On a completely side note, I think “inflation rate” is more of a psychological issue So I agree with everything you’ve said in this paragraph completely. The issue is the growth of a network is still dependent on psychology. Even if the system itself is sound, if people feel…

[image] xlc: Inflated tokens have two purposes: Staking reward Treasury In other words, inflation transfers wealth from one person to another. As long as the transferred wealth is used efficiently and productively for useful purposes, it’s not a big problem. It’s all about the governance de…

[image] xlc: The primary reason for inflation is security budget. We need people to pick good validators and stake. That’s what make the network economic secure while maintaining decentralization. Amusingly, bitcoin’s consensus shall break down due to halvings transitioning from inflation to …

Could the funds already in the treasury (with inflation set to 0%) accomplish the same effect?

everyone knows high inflation cause harm to value of dot ,polkadot is the only one set so high inflation rate while utility is limited now.

Of course inflation is far too high. It could be low single digits (positive…there’s a reason no one implements demurrage – the UX is terrible). But speaking from experience on another network, proposing to lower it will be the biggest shitstorm to ever hit OpenGov by an order of magnitude. It’s c…

[image] polka.dom: Is there any sentiment among the community that our inflation rate is too high? In the current zeitgeist inflation above some small amount is seen largely as a bad omen for the economy, and something to be avoided. I’m personally worried that this is scaring off potential immi…

Polkadot is one the very most decentralized networks out there and I think this is a direct result of this inflation rate. More than half of the total supply is staked right now , and when I’ve gotten rewards, I’ve been getting something close to 16% APY. That’s a good deal. I feel that chasing pric…

Inflation rate too high

Governance

mister_cole November 3, 2023, 11:59pm 2

There has been some discussion previously. For instance: What if Polkadot had 10% deflation instead of inflation?

Topic		Replies	Views
Proposal for Adjusting Polkadot's Inflation System: Reducing Issuance and Complexity Governance	104	6123	June 2, 2025
What if Polkadot had 10% deflation instead of inflation? Governance	12	2191	August 21, 2023
Polkadot's Economics: Tools to Shape the Forseeable Future Governance	24	2570	July 2, 2024
Polkadot's Economic Resilience and the role of Issuance Ecosystem	15	1397	September 7, 2025
Adjusting the current inflation model to sustain Treasury inflow Governance treasury	58	9551	August 7, 2023

Inflation rate too high

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