Temperature Check: Reduce Network Inflation to 0.2% AXL per External Chain

To continue incentivizing validators and potentially support more chains before the Amplifier services are live, we propose reducing network inflation to 0.2% AXL per external chain. These parameters would still be in line with the analysis performed in https://community.axelar.network/t/adjusting-axelar-network-incentives-a-proposal-to-scale-to-thousands-of-chains-call-for-comments/ to encourage healthy validator participation and continue scaling the network. This would reduce the inflation to a total of 4.8% (1% base + 19*0.2%) and the staking APR to approximately 6.9%.

6 Likes

As a staker, 6.9% APR is still really high so I’m fine with the impact on that side! Can’t speak for the validators of course.

3 Likes

As a validator on the network, we fully support this decision to adjust the inflation rate, recognizing its importance in both encouraging validator engagement and facilitating the expansion to more chains. This approach aligns well with our goals for sustainable growth and robust participation across the Axelar network.

4 Likes

LunaNova, as a committed Axelar validator, were supportive of the outcome from the original analysis of network incentives required to support scaling the network. Consequently we agree with this inflation reduction implementation.

2 Likes

We are in support of anything that adds value to axelar ecosystem. Reducing inflation seems like the right way to go.
Also having inflation over 5% seems a bit high.

Chainode Tech as validator and long term supporter of the Axelar ecosystem is also in favour of reducing the inflation rate per external chain as we believe it would be beneficial for all stakeholders involved in the ecosystem.

Tessellated is supportive of reducing inflation. We believe it supports sustainability and scaling of the Axelar network.

In agreement with the proposed changes.