Improving Desmos Inflation Setting

When we launched Desmos in August last year, we aimed to use a high inflation to incentivize engagement (i.e. staking) with a high target staking ratio. Due to the change of market environment, we suggest the Desmos community consider a new inflation setting.

With the emergence of yield farming by providing liquidity on dex, the above objective is no longer realistic. We foresee this situation will only deepen after liquid staking becomes more popular.

Moreover, we are expanding our ecosystem by launching more social dapps on Desmos which will provide more use cases for DSM other than staking and liquidity provision. So the inflation parameters we set last year seem to be obsolete.

In addition, we will launch a series of marketing campaigns to promote the use of Desmos for building decentralized social networks for Web3. We believe the improved inflation setting will help DSM in the long run which will in turn improve the effectiveness of these campaigns.

As such, we have made a proposal to bring these changes to Desmos:

Inflation Max: from 80% to 15%
Inflation Min: from 40% to 6%
Goal Bonded: from 90% to 67%

The proposal is now in voting period. You can check it on Big Dipper.

The lowered inflation rate and bonded goal will help Desmos to reach a more reasonable staking APR which will foster the healthy growth of the ecosystem. We believe this benefits every stakeholder of Desmos. We look forward to building a strong Desmos with all of you :)