Parameter Change: Enabling Inflation

PROPOSER: The KYVE Foundation ([email protected])

Currently, inflation has been disabled on the KYVE network while we rolled out our Foundation Delegation Program. This proposal, if passed, will enable inflation to be set to our default parameters, aiming to reach an APY of 20%.

Voting Options

Voting YES

• A YES vote on this proposal indicates inflation SHOULD be enabled.

Voting NO

• A NO vote on this proposal indicates inflation SHOULD NOT be enabled.

Voting NO WITH VETO

• A NO WITH VETO vote on this proposal indicates inflation SHOULD NOT be enabled; and that the proposal depositors should be penalized.

Voting ABSTAIN

• An ABSTAIN vote on this proposal indicates that you decline to give a specific opinion on this proposal while maintaining active governance participation.

Proposal Details

As described in our Mainnet Day 0 Roadmap Announcement, in order to properly roll out our Foundation Delegation Program, we needed to disable certain features on network launch. This proposal aims to bring the KYVE network to its true state.

To add proper incentivization on the network, it's crucial to find a balance between the APY and inflation, to reward participants correctly while not devaluing the token over time.

The default parameters:

7% and 10%, were calculated considering the staking ratio at genesis. The goal is to reach an APY of 20%, a reference value influenced by other Cosmos networks.