[WIP] Inflation and staking rewards

Proposals
1

Motivation

  • Updated the parameters of the inflationary rewards to distribute ~50% of the token supply within 4 years.

Updated Parameters

Minted Tokens Weekly

Total Tokens Weekly

  • Begin Inflation Rate: 1%
  • Inflation Decay Rate: 1.35%
  • Length of the Inflationary Reward: 4 years
  • Terminal Inflation Rate: 1.5%

Please see this Inflationary Rewards gsheet for more details.

Inflation Reward Distribution

Staking Rewards

  • Stakers can stake their PERP tokens in Staking Pool and earn rewards.
  • During a staking epoch (one week), stakers cannot withdraw their tokens from the Staking Pool.
  • Trading fees sharing are claimable right after the epoch.
  • 100% of the staking rewards are locked for one year.
  • The locked rewards would not be staked in Staking Pool.

Parameters Updatable by Governance

  • Begin Inflation Rate: 1%
  • Inflation Decay Rate: 1.35%
  • Terminal Inflation Rate: 1.5%
  • Staking epoch
    • The Length of staking epoch is one week
  • Reward distribution
    • 100% locked for one year
5 Likes
2

To couple with the update to the PERP token release schedule, we will shorten the length of the staking rewards to 3 months. This will give us more freedom to move and iterate faster.
Will update the content above soon.

1 Like
3

As I understand, ā€œBegin Inflation Rateā€ and ā€œInflation Decay Rateā€ is pr. week while ā€œTerminal Inflation Rateā€ is pr. year.

Question: Do stakers need to claim staking rewards every week, or can fees be accumulated and claimed when needed? (ā€œTrading fees sharing are claimable right after the epoch.ā€). I ask because gas fees can be expensive.