The InfiniSVM ecosystem has reached an important milestone. Recently, the first governance proposal SIP-1 from @solayer_labs was passed with nearly unanimous support, receiving 99.98% approval from 182 voters, highlighting the community's strong recognition of this proposal.



This highly anticipated proposal focuses mainly on the PoS (Proof of Stake) inflation rules for the $LAYER token. The new rules are cleverly designed to take into account the incentive needs during the early stages of the network while also considering long-term inflation control. Specifically, the initial annual inflation rate is set at 8%, then decreases by 15% each year, ultimately stabilizing at a level of 2%.

It is worth mentioning that this inflation mechanism does not take effect immediately. It will be implemented in the first epoch after the mainnet and staking functions go live. This prudent approach effectively avoids the potential risks of blindly issuing tokens while the network is not yet fully operational.

The new inflation rules have a positive impact on all parties involved in the ecosystem:

Validator operators can accurately predict returns based on this. The higher annual percentage rate (APR) in the early stages helps to offset hardware investments and operational risks, while the gradual reduction in inflation later on will not lead to a significant decrease in returns.

For $LAYER token holders, this mechanism avoids sudden large-scale inflation. The slightly higher inflation rate in the early stages is beneficial for promoting network growth, while stabilizing at 2% in the long term minimizes the token dilution effect.

Developers and ecosystem partners benefit equally. Ample staking rewards not only ensure network security, but a moderately controlled inflation rate can also attract more users to join the InfiniSVM ecosystem.

Overall, this inflation mechanism draws on the successful experiences of other mainstream blockchain projects while fully integrating the unique architecture of InfiniSVM, achieving a good balance between promoting short-term network growth and maintaining long-term stability. This will undoubtedly lay a solid foundation for the sustainable development of InfiniSVM.
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FrogInTheWellvip
· 08-14 19:46
The inflation policy is good!
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SignatureDeniedvip
· 08-14 19:40
Bullish without a doubt
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ChainPoetvip
· 08-14 19:40
The incentive design is very reliable.
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NestedFoxvip
· 08-14 19:38
The inflation design is really good.
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HashRatePhilosophervip
· 08-14 19:27
The inflation design is wise and robust.
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