This is a multi-step process that addresses tokenomic concerns and proposes a general overhaul of the STARS token with the goal to:
Reduce total inflation by 60%
Achieve a Net Staking Yield of ~+7% to no longer dilute STARS stakers.
Lower the max supply from 4B STARS to 3B.
Reach tail-end token emission (95% of max supply) by the year 2027 vs. 2040 (1 year thridening period vs. 3 year thirdening period)
Process to implement (4 proposals):
Prop 1: Reduce inflation by 60% with a One-OFF Emissions Cut that would reduce daily emission from ~1.8M STARS to ~730K STARS and would drop the inflation rate from ~33% to ~11%
Prop 2 - Use Community Pool Funds to supplement the emissions cut.
Prop 3 - Redirect token emission from the bloated Community Pool towards staking. Adjust the token emission allocation to NFT-DeFi primitives as these features become available.
Prop 4 - Change the FairBurn mechanism for NFT listing fees & Stargaze Name minting fees.
Reasoning:
Greatly reduces inflation and brings it to a healthy level
Benefits Net Staking Yield where staking would outpace inflation
Community Pool funds can’t be used right now for large expenses without heavily negatively impacting token price
Community Pool funding request in Prop 2 does not introduce heavy sell pressure and distributes funds to the community.
Users of $STARS (stakers, NFT traders and holders) will be less impacted by the issuance of new $STARS tokens
