Governance Proposal: Reforming the Inflation Policy for Long-Term Sustainability


This governance proposal seeks to fundamentally revise the inflation model of Gitopia’s native token, $LORE. It presents a shift from the current maximum inflation rate of 35%, designed to halve every 2 years over 11 years, to a more sustainable framework. The new model advocates for an initial rate of 15%, with a planned annual decrement of 1%, eventually dwindling to zero over a 16-year period, while preserving the hard cap of 1,711,136,479 $LORE tokens.

Background and Context

Current Scenario

The existing inflationary mechanism, featuring a maximum rate of 35%, was conceived to stimulate early network engagement but casts a shadow on long-term sustainability.

Proposed Amendments

  • inflation Rate: 15%
  • Annual Decrement: 1%
  • Finalization Timeline: 16 years

Objectives and Goals

  1. Enhanced Sustainability: Establish a more resilient token economics structre.
  2. Unaltered FDV Ratios: Retain the existing Future Dilution Valuation (FDV) allocations.
  3. Extended Maturation Period: Allow for a prolonged timeline for token absorption in the market.


Economic Resilience: A reduced inflation rate minimizes sell-off pressures from token miners and delegators, contributing to long-term value stability.

Upholding Community Contracts: The proposal ensures that FDV ratios remain unchanged, thereby sustaining community trust and previously established agreements.

Controlled Token Release: The elongated timeframe for reaching the hard cap ensures a calculated and market-friendly token release strategy.

Impact Assessment

Economic Implications: The revised model anticipates a tempered yet reliable growth in token supply, thereby fostering economic stability.

Technical Requisites: Implementing this proposal would necessitate minor adjustments to the mint module parameters.

Conclusion and Call to Action

This proposal is a strategic initiative aimed at aligning the inflation mechanics of Gitopia more closely with the objectives of long-term sustainability and community trust. We invite stakeholders to critically evaluate this proposal and actively participate in the discussion here. Your support and feedback are crucial for the successful implementation of this proposal.