Need to reduce inflation rate

General Discussion
#1

I know the icon’s maximum inflation rate is 3.99%. I also know that the staking reward is around 8%.

Nowadays, people’s perception is that paying a lot of interest is not good. Even Icon’s relative inflation is rather high. This does not give you psychological stability. Investing has a huge psychological impact.

Meanwhile I know that chains such as ICE, which will be released soon, also give rewards centered on icx. I think it is necessary to increase the scarcity of icx as the key coin of the Icon network.
Therefore, I think that the maximum inflation rate of icx should be around 2% by creating a minimum wage for node operation compensation and reducing staking compensation. Also, in the icon ecosystem, it is good for Icon for iconists to participate in economic activities rather than just staking. Please consider

#2

Disagree, ICX inflation was a problem in the past but current inflation is not an issue at all in my opinion. IRL inflation is much much higher and if you compare it to all the top chains ICON sits at one of the lowest in terms of inflation. Reducing inflation from 4% to 3% will have zero price impact, in fact it will more than likely lead to a negative effect, people will pull out if incentive to stake is too low. We need to focus on building on chain transactions via bridge and all Dapps etc, this will lead to burns which will help offset inflation more naturally without upsetting investors.

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#3

ICON’s inflation is pretty standard, if anything on the lower end of the spectrum compared to other L1 protocols.

Here is a site that you can explore some other inflation rates from other networks: LINK

We also hope that ICON Bridge/BTP can help curb inflation by generating more network fees as well as BTP Buyback-and-Burn

I don’t believe ICE rewards are centered around ICX. Yes, ICX will need to be staked to secure the network, but inflation will occur in the network’s native gas token (ICY/ICZ). This means that ICE/SNOW have no inflationary pressure on the ICX token but rather could be considered a “sink”.

We’re hoping to have a proposal out soon regarding voter/validator compensation.

#4

Thank you for the very good material.

Compared to other tokens, icx’s inflation is low and positive. However, I thought icx inflation was a bit high compared to the stable inflation rate in the real world (excluding BTP). I also thought it would be reasonable to lower the maximum inflation rate by about 1% to achieve and maintain deflation through BTP.

Of course, I think icx has low inflation compared to other coins, and Icon is a great blockchain with its own and unique technology.

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