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Update Inflation Info #6384

Merged
merged 4 commits into from
Nov 18, 2024
Merged

Update Inflation Info #6384

merged 4 commits into from
Nov 18, 2024

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filippoweb3
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@filippoweb3 filippoweb3 added the A1 - In Progress Not ready for review yet. label Nov 13, 2024
@filippoweb3 filippoweb3 self-assigned this Nov 13, 2024
@filippoweb3 filippoweb3 linked an issue Nov 13, 2024 that may be closed by this pull request
@filippoweb3 filippoweb3 requested a review from DrW3RK November 15, 2024 15:32
@filippoweb3 filippoweb3 added A2 - Please Review Pull request is ready for review. and removed A1 - In Progress Not ready for review yet. labels Nov 15, 2024
@filippoweb3 filippoweb3 requested a review from jonasW3F November 18, 2024 08:53
<MessageBox message="[Learn about Polkadot's native token DOT inflation](./learn-inflation)." />

KSM is an inflationary token. Inflation is
[set to be 10% annually](https://github.com/paritytech/polkadot-sdk/blob/756ccc35e93d1a78e3c71a0e67ae4da5f1d09f69/runtime/kusama/src/lib.rs#L535).
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This is a super old commit! the actual 10% is stored in the parameters pallet instance in the Kusama runtime.

portion may go directly to the treasury. The exact percentage that goes into both varies and is
based on the amount of DOT that are staked. Please see the article on
[inflation](../learn/learn-staking.md/#inflation) for more information.
The 85% of inflation is rewarded to validators for performing their duties, while the 15% goes to
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Note that this 15% is now hardcoded, but used to be something that we intended to parameterize with MaxStakingReward in Polkadot.

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yeah, this is why I did not mention it for now. I know that the current inflation fix it temporary and at some point parameters will be exposed to gov. We can add this info once is done.

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Note that this 15% is now hardcoded, but used to be something that we intended to parameterize with MaxStakingReward in Polkadot.

Yes, the goal is to have this adjustable. Since the fixed DOT issuance was not something that we could do with the current code (except hardcoding it), we had to take a shortcut. I'll make an issue to reintroduce adjustability via governance maybe with integration of the parameters pallet.

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pTAL @jonas and @gpestana

docs/learn/learn-inflation.md Outdated Show resolved Hide resolved
docs/learn/learn-inflation.md Outdated Show resolved Hide resolved

Briefly, the ideal staking rate can be calculated as follows:
Net DOT inflation depends on [treasury expenditures](./learn-polkadot-opengov-treasury.md) and

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you mean treasury burns?

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yes treasury burns

@filippoweb3 filippoweb3 merged commit 8044a7e into master Nov 18, 2024
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@filippoweb3 filippoweb3 deleted the update-inflation branch November 18, 2024 14:37
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Add new inflation info
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