Short Summary: Activate Block Rewards on Altair and burn part of Altair Treasury
High-level objective: This proposal is aimed to facilitate the future integration for Developers and protect Altair tokenomics from additional dilution of the token supply
Based on this message (Upcoming Runtime Upgrades on Centrifuge 1019 & Altair 1027) and in accordance with this the Block Rewards and Collator cycle has been successfully implemented, but not activated yet.
In order to mirror (with Centrifuge) all on-chain changes and facilitate future testing and implementation i would like to propose Activate Block Rewards on Altair chain with the same parameters as was described here CP6: Block rewards and Collator Cycle.
This means that Block Rewards on Altair will mint, if this proposal passes, an additional 3% (annual) of new tokens into Altair’s treasury.
On Centrifuge, the Treasury was never funded and it currently contains only 68 CFG. On Altair, we have a different situation and the treasury already contains 94.3234 M AIR. In my opinion, the additional minting of tokens will only worsen the tokenomics and the value of the token.
- Total Issuance 477,091,000 AIR
- Altair Treasury: 94,323,400 AIR
- Inflation 3% = 14,312,730 AIR
- Block rewards = Annual Inflation/Total blocks produced in 1 year = ( 14,312,730 AIR/ Year) / (2,628,000 blocks/year) ≈ 5.4462 AIR/block
- Daily rewards minted: 39,212 AIR
- Collators rewards (annual): 12,000 AIR * 10 collators * 12 months = 1,440,000 AIR
To avoid any additional diluting of Altair token supply, therefore, I propose to Altair token holders the following:
Activate Block Rewards on the Altair chain ( 3% of annual Total Supply )
Burn 15,752,730 AIR - the equivalent of an annual minting of tokens (including collator rewards) with Block Rewards
If this proposal passes the amount in Treasury will be reduced to XX (Balances → set.Balance → Treasury Wallet address → newFree 78,570,757)
Based on the above, I believe that this proposal is in the interest of the Altair Community for several reasons:
- Activating Block Rewards with the same parameters will facilitate any future integrations
- The burning of a portion of Altair Treasury will keep the tokenomics unchanged with activating of Block Rewards.
This will ensure that the total supply of AIR will not increase over the course of the first year.
This proposal could be revisited in the future by Altair Community.
The RFC will be open for 7 days.
Looking forward to any feedback, suggestion, improvement or/and any concerns that you might have with this proposal.
If there is support for this proposal, the next step will be to create an on-chain proposal.
If you have any questions or comments, please feel free to reply to this post.