Polkadot developer Kian Paimani has proposed a flexible inflation upgrade for the network to address the issues tied to the blockchain’s inflation logic.According to the proposal’s GitHub document, the Polkadot relay chain’s current state presents various challenges, including high inflation rates. These stem from outdated infrastructure and parachain slots’ ineffective influence on inflation.Additionally, adjusting the inflation rate is complex, requiring manual intervention via source code modifications rather than streamlined on-chain governance.The proposal further recognizes that Polkadot’s inflation rate is intricately linked with its staking mechanism and lacks ideal configurability. This interdependency complicates attempts to forecast inflation accurately and can disrupt staking events. So, the convoluted process of updating the inflation rate exacerbates these challenges.However, the flexible inflation proposal aims to mitigate these issues by offering a framework for easier inflation rate adjustments through a new “pallet_inflation.”This update “does not propose any changes to the actual inflation rate but rather provides a new technical substrate (pun intended) on which token holders can decide more clearly and transparently on the future of the DOT token’s inflation in a more clear and transparent way.”If ratified, the upgrade promises greater transparency and comprehension of inflation mechanisms. It facilitates smoother parameterization through governance mechanisms while disentangling inflation from staking logic.Paimani also pointed out that the proposal aligns with the economic vision outlined in the JAM Greypaper, indicating its potential as a viable economic solution for DOT.He added:“While mainly intended for Polkadot, the system proposed in this RFC is general enough such that it can be interpreted as a ‘general inflation system pallet,; and can be used in newly onboarding parachain.”Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics. Get the latest crypto news and expert insights. Delivered to you daily.SubQuery said these RPCs are the first on Substrate-based networks and will be operated by over 30 independent Node Operators.Hydration said the funding will boost the liquidity and efficiency of its single-sided liquidity provisioning platform, Omnipool.Accelerate Polkadot said it wants to provide the de facto answers to Polkadot’s developers questions.The Decentralized Fund inititaive is designed to support Polkadot-focused organizations with funding.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
