# Soft Pressure Model: Capped & Stepped Inflation **URL:** \ **Category:** Ecosystem\ **Created:** [August 1, 2025, 4:59pm UTC](https://forum.polkadot.network/t/soft-pressure-model-capped-stepped-inflation/14171 "2025-08-01T16:59:54Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![ChrawnnaCorp](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.polkadot.network/chrawnnacorp/32/10469_2.png) [@ChrawnnaCorp](https://forum.polkadot.network/u/ChrawnnaCorp)\ **Post date:** [August 1, 2025, 4:59pm UTC](https://forum.polkadot.network/t/soft-pressure-model-capped-stepped-inflation/14171/1 "2025-08-01T16:59:54Z")
### Note: start by reading the [Capped & Stepped Inflation General Info Overview](https://forum.polkadot.network/t/capped-stepped-inflation-general-info/14168)! Below lies an example of a Capped & Stepped inflation model that exerts **Soft Pressure** on DOT holders to replace inflation with revenue, reduce expenses & maintain Market Cap valuations on an expedited timeline! You can produce your own Capped & Stepped models with the [Polkadot Inflation Tool Calculator](https://polkadot-inflation-tool.vercel.app/calculator.html)! ### **(Soft Pressure)** Laki’s Pie - Banana Cream Edition **- 2 year periods, 13.14% Steps - 3.14B Cap** This model produces a highly memeable, psychologically resonant framework riffing on the Pi & Circle theme. ![Screenshot 2025-07-14 at 7.48.42 PM](https://europe1.discourse-cdn.com/flex005/uploads/polkadot2/original/2X/6/66d459ba1efb9f81d9193ef1ef5419f0021c565a.jpeg) It produces a gradual pressure on the network to perform on timelines more extreme than today’s fixed 120M DOT inflation schedule. Let’s explore: ![Screenshot 2025-08-01 at 12.47.21 PM](https://europe1.discourse-cdn.com/flex005/uploads/polkadot2/original/2X/0/03c33ca2956ef5c643fb890750ada3fd4893f46f.png) → The Green line shows Total Supply under this model. → The Blue line shows Inflation by year under this model. → The Grey line shows Supply under current model. → The Yellow line shows fixed inflation of 120M DOT (current model). This model will reached the supply cap in 2061! ![Screenshot 2025-08-01 at 12.48.43 PM](https://europe1.discourse-cdn.com/flex005/uploads/polkadot2/original/2X/1/117ea0d4cc7030cb4a7102382883806e324f43cd.png) Now let’s look at the impact on staking reward APR when reducing inflation without increasing revenue by introducing a Red line: ![Screenshot 2025-08-01 at 12.50.00 PM](https://europe1.discourse-cdn.com/flex005/uploads/polkadot2/original/2X/3/379c1f0dba3a1951c426a009e23dbfa734caa181.jpeg) **Staking APR by year:** 2025 ~14% 2026 ~11.3% 2028 ~8.7% 2030 ~6.9% 2032 ~5.5% 2034 ~4.5% 2036 ~3.7% 2038 ~3.1% 2040 ~2.6% 2042 ~2.2% 2044 ~1.9% Let’s see what sort of Market Cap we would need maintain maintain the USD value of current expenses ($450M) by switching to a Logarithmic Scale and adding a purple line. The New Red LIne (sorry for the colour confusion 😇) Shows maintenance of expenses reduced to $90M. ![Screenshot 2025-08-01 at 12.52.47 PM](https://europe1.discourse-cdn.com/flex005/uploads/polkadot2/original/2X/b/bdd0e2ed8f789a9d78375af4f9d6d3d852f3dd00.jpeg) This chart (The Network Revenue Pessimist’s view) reflects the above the MC Goals by year with approximate MC of other industry projects for reference: ![Screenshot 2025-08-01 at 12.59.26 PM](https://europe1.discourse-cdn.com/flex005/uploads/polkadot2/original/2X/1/1a5f3fb5bbe2c4ed8ea3eee29077590e91f67af9.png) When setting a new Capped & Stepped inflation schedule we must consider realistic expectations on the network to reduce expenses, increase revenues, and maintain Market Cap valuations. What now? → Return to the [Capped & Stepped Inflation General Info Overview](https://forum.polkadot.network/t/capped-stepped-inflation-general-info/14168)! → Explore a [Hard Pressure Capped & Stepped Model](https://forum.polkadot.network/t/hard-pressure-model-capped-stepped-inflation/14169)! → Explore a [Medium Pressure Capped & Stepped Model](https://forum.polkadot.network/t/med-pressure-model-capped-stepped-inflation/14170)! → Signal on-chain by [voting for your favourites with your DOT](https://voting.opensquare.io/space/polkadot/proposal/QmeX7vFJLTxSyMTF5f77bdznajdDFW88aLiq8ASZUUNUm6)! Otherwise we request that you please engage in respectful discourse regarding this model below.