Our Thoughts on 4% EOS Inflation Removal
On May 12, the block producer eosmeetone submitted a proposal aiming to reduce EOS annual inflation to 1% removing the additional 4% that is now deposited to the WPS fund.
Here’s the link to the proposal itself: https://eosauthority.com/approval/view?scope=eosiomeetone&name=removesaving&lnc=en
Having considered the proposal by the meet.one team, we have decided to publish an article outlining our own vision of how the inflation could be adjusted to better suit the current state of the EOS ecosystem.
We are proposing the following changes:
- Reduce WPS to 1%.
- Introduce a development incentive program (similar to the Boscore’s one)
- Increase BP rewards to 1.5%.
Reduction of WPS to 1%
At the current rate 1% inflation is worth roughly 10 million EOS or over 50 million dollars. This amount of funds should suffice for the building of tools and developing the ecosystem.
Moreover, reduction of the inflation rate is beneficial for all EOS holders as it cuts down dilution of the EOS value in US dollars.
Introduction of the development incentive program
Many blockchains have got the incentive system to encourage the development of the EOS ecosystem powered by the community. BOScore has recently announced that they are releasing 100 million BOS (1.6 million EOS) in the the EOSIO ecosystem and we think that such an initiative could be applied on EOS as well.
Increasing BP rewards to 1.5%
Currently many BP’s suffer from the price volatility and sometimes run the servers at their own expense which discourage participation. In the long run this may lead to the loss of interest in a BP on EOSIO. In order to sustain the BP engagement at its current level, higher rewards can be granted to those maintaining and securing the network 24/7.
In general, Attic Lab supports the idea of reducing EOS inflation as we consider this a move in the right direction. However, the removal of WPS fund altogether might be too drastic of a change for now.
Besides, we welcome further discussion of the changes described in this article. We believe that only together we can find a solution to the inflation issue.
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