The first governance proposal SIP-1 of @Solayer is about to take off. Among 182 voters, 99.98% voted in favor, which is an incredible level of support!
This proposal mainly establishes the PoS inflation rules for InfiniSVM's $LAYER tokens: starting with an annual inflation of 8%, then decreasing by 15% each year, and finally stabilizing at 2%.
Moreover, the inflation rewards will not take effect immediately; we have to wait for the mainnet and staking features to go live, and the first epoch will only start then. This is practical and prevents issuing tokens recklessly before the network is operational.
The benefits are also clear for different groups.
Validator node operators can calculate their earnings in advance. The high initial APR can cover hardware costs and risks, and later on, even if inflation decreases, they need not worry about reduced earnings.
LAYER holders need not worry about milestone inflation; in the early stages, more tokens are issued to promote network growth, and later it will be controlled at 2%, leading to less long-term dilution.
Developers and partners can also rest assured, as there are sufficient staking incentives to ensure network security without malicious inflation, attracting more users to InfiniSVM.
I must say that this rule not only references the experiences of other mainstream chains but also aligns with the architecture of InfiniSVM, considering both short-term user acquisition and long-term stability.
