Initia Foundation, which supports the development of the modular blockchain platform Initia, has submitted a governance proposal outlining an Inflation Correction and Unstaking Subsidy Plan.
The proposal aims to adjust the inflation rate by reducing the current 5% annual release of the total INIT supply to 5% of the original annual staking supply, approximately 1.25% of the total annual supply.
This adjustment addresses a misconfiguration of the inflation rate since the INIT token’s launch on April 24th, which has resulted in higher-than-anticipated inflation.
The Initia Foundation remains committed to fostering open discussion, acknowledging issues, and developing fair solutions with users in mind.
Despite Prop 39 being in a passing state at writing, the Foundation has put forth a new proposal to correct the Staking Inflation rate.…
— Initia Foundation 
(@initiaFDN) May 23, 2025
Two-Phase Unstaking Subsidy Plan To Compensate Users Impacted By Proposal 39
The Initia Foundation has also introduced a two-phase unstaking subsidy plan aimed at reimbursing users who experienced staking income losses due to Proposal 39.
Users who unstaked their tokens between the announcement of Proposal 39 on May 20th and the posting of the new proposal on May 23rd, then canceled their unstaking before the planned inflation reduction, estimated for June 2nd, and remained staked after this cancellation when the inflation adjustment takes place, will be eligible for compensation covering the missed staking rewards during the unstaking period caused by the confusion surrounding Proposal 39. It is important to note that all three conditions must be met for the subsidy to apply.
Furthermore, users with any unstaking positions that have an unbonding period overlapping or occurring between June 2nd and June 23rd, the 21-day period following the inflation adjustment, will receive compensation from the Initia Foundation for missed staking rewards. The subsidy will amount to 25% of the updated nominal staking APR for the duration of this period. The nominal staking APR will be determined based on the daily average APR throughout the relevant portion of the unstaking period within this timeframe.
Eligible users can claim their Unstaking Subsidies through the Initia application until July 7th. These claims will not be subject to any lockup or vesting period and will remain open for 30 days following the activation of the claim process. The on-chain vote for the proposal will start on May 26th at 6:00 AM UTC and conclude on June 2nd at 6:00 AM UTC, at which point the proposal will either be approved and executed or rejected.
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