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 These stem from outdated infrastructure and parachain slots’ ineffective influence on inflation.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 framewo
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