Summary

This proposal aims to:

• update distributor parameters to increase staking reward by 10% from 60% to 70% of inflation and transaction fee
• start warm-up period 2% inflation while waiting for community and public listing.

Abstract

We propose here that validators supporting the Chain4Energy project at an early stage should be incentivised in the period of waiting for the public sale and listing of the token by running inflation at 2% level (5 times lower than the target one).

Motivation

As of today, before launching the airdrop, private/public round and public listing at DEX or CEX (depending on selected strategy), most of the tokens are under the control of the team. We do not want to be the main beneficiaries of the high inflation that is at the beginning. That's why we want the community to take advantage of this opportunity when they have the chance. As of now, the public listening is targeted in q3/2023. This date depends on the market conditions. On the other hand, we do not want validators to be able to compensate for the cost of the infrastructure on which our blockchain operates.

Specification

Distributor parameters change

Original parameters:

• 60% - Staking reward
• 35% - Ecosystem Incentive
• 5% - Development fund

Updated parameters:

• 70% - Staking reward
• 30% - Ecosystem Incentive
• 0% - Development fund

Warm-up period 2% inflation Decreasing the inflation from original 40M of tokens per year to 8M/year for the period before public listing. Full inflation will be enabled via governance proposal directly before the public listing.

Risks

The main risk associated with this proposal is that the proposed incentive could be insufficient to compensate for the cost of infrastructure. However, we encourage you to contribute to the project and earn as much as possible from the strategic pool delegation. Public listing may be postponed if market conditions are not sufficient to launch our project. In this case, we will look for a method to reward validators for their work.