Regarding the DOT inflation proposal currently being voted on, the main debate is actually between Hard Pressure and Growth Pressure. Essentially, both proposals introduce the concept of a 'funding pool', but in Hard Pressure, this pool is called the 'revenue pool', while in Growth Pressure it is called the 'subsidy pool' or 'incentive pool'.
However, in the revenue pool, you can allocate funding ratios for different categories (cybersecurity, treasury, parallel chains) through OpenGov and adjust through parameters.
In Growth Pressure, because the proportion of the incentive pool is also uncertain, it also requires OpenGov to decide how much proportion of inflation flows into the incentive pool, so essentially there is no difference from Hard Pressure, as both can be adjusted.
So, where is the difference?
The answer is the annual increase amount!
So what impact does this have?
I created a chart to compare how high the DOT price needs to be raised to maintain a security cost of $450 million for the network under different (cybersecurity: treasury: parallel chain incentives) allocation ratios in the two proposals. From the table, we can conclude a few points:
1. It is clear that under the same cybersecurity spending requirements, Hard Pressure requires a higher DOT price to maintain, which means there is higher market value pressure.
2. However, choosing Growth Pressure does not mean there is no higher market value pressure; this depends on OpenGov's adjustments to the three parameters. For example, if we choose Cybersecurity: Incentives: Treasury = 50:35:15 in Growth Pressure, its market value pressure is not less than the case of Cybersecurity: Treasury = 85:15 in Hard Pressure, and it can also create higher ecological value than the Hard Pressure proposal, because at this point, the funding for the treasury and the incentives is clearly higher.
3. Regardless of which proposal, once the proportions are determined, the theoretical funding amounts for the treasury and parallel chain incentives are the same in both proposals.
Learn more in the latest article from PolkaWorld(If DOT inflation drops to 3%, what market value is needed to maintain cybersecurity spending?)
Hard Pressure: polkadot.subsquare.io/referenda/1710
Soft Pressure: polkadot.subsquare.io/referenda/1709
Growth Pressure: polkadot.subsquare.io/referenda/1711
