Thank you all for your interest and feedback. Reading your comments has significantly shaped my perspective.
First, I understand and share your concern that weighting votes based on staked amounts could lead governance members (validators) to favor maximizing their personal interests over the collective good of the chain.
Regarding the existing functionality from the Klaytn era to adjust inflation rates, while technically present, it’s essentially a half-measure—unused and dormant due to institutional shortcomings. We haven’t yet practically utilized or seriously discussed this functionality, making it effectively incomplete.
As I’ve repeatedly emphasized, changing inflation rates is a very weighty issue for governance members to propose or decide upon independently. Therefore, I suggest establishing a more formal institutional mechanism to reduce the burden on governance members and to enhance or even mandate participation in inflation-related discussions.
So, I propose a new approach inspired by the dot-plot system used by the Federal Reserve. The concept of quarterly adjustments to inflation remains the same, but governance members would only provide their opinions. The foundation, acting as the chair, would finalize the inflation rate.
The governance members’ role would be to propose their optimal inflation rates for the KAIA Chain numerically. These suggestions would then form a dot plot, clearly identifying which member supports each figure.
The foundation would determine the inflation rate based on this dot plot. Additionally, it would provide a written explanation of its decision, ensuring transparency and continuity. Such records would become valuable assets for our chain.
Shifting from a governance member-centered approach to a foundation-centered one reflects a reconsideration of responsibilities and contributions. The foundation has the largest stake, contributes the most significantly, and bears ultimate responsibility for all changes. Realistically, no individual or governance member can shoulder the consequences of such crucial decisions; only the foundation can meaningfully do this.
Of course, since this is a governance process, the final inflation value proposed by the foundation must still undergo an on-chain vote. A potential concern here is the risk of continuous vote rejections due to perception gaps among participants, which could prevent reaching consensus.
Interestingly, despite extensive private discussions about inflation, I’m the first to formally bring this topic to the forum. I’m genuinely pleased to have initiated this dialogue and hope this effort paves the way for a structured institutional framework.
Retail users like myself face clear limitations, making it essential for governance members and the foundation to take the lead in structuring this initiative. Until this proposal is refined into an official governance agenda, I’ll actively contribute, offer feedback, and promote its importance.
This revised proposal significantly differs from my initial post, and some of you might prefer the original. I encourage you to thoroughly consider both proposals and share your insights.
@lewis_kim Regarding absolute values vs. percentages (relative to current levels): Using percentage-based adjustments can confuse what is absolute versus relative. I suggest using absolute values for clarity.
@lewis_kim Concerning the maximum allowable change per vote—1% or 0.1%: You’ve argued that 1% might be too significant, but to me, 0.1% seems negligible. Quarterly votes determine annual inflation rates, and adjusting by merely 0.1% effectively signals maintaining the status quo. External observers might even interpret it as a symbolic gesture. However, I’m also uncertain about endorsing a full 1%, so I’d appreciate broader input before settling this issue.
@lewis_kim @kaiasex Regarding ‘block reward distribution ratio’ and ‘block proposer selection’: These topics indeed closely relate to inflation. Unfortunately, these exceed my current capacity. I intended to address them here but struggled to integrate them effectively. If either of you can create a dedicated forum thread on these topics, I’ll actively engage there.
