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[WFC] Halving, maximum supply and zero minimum commission rate
Between my last proposal (https://kusama.subsquare.io/referenda/596) and this one, an upgrade that was later (unfortunately) “corrected” clearly showed that reducing staking rewards and thus also the inflation rate leads to positive price development, because fewer tokens could be sold. Positive price development is vital for every project, as it not only guarantees its financing but also ensures the attractiveness needed to draw in and retain developers and investors.
Unfortunately, Kusama not only followed the same misguided path as Polkadot in the past (unlimited supply, high inflation, increasing the minimum commission rate), but is still continuing down this path, which—as everyone can see—is leading to increasingly precarious conditions and driving many away from Kusama.
That, my friends, cannot possibly be the goal, and it is a shameful failure. To correct this, I therefore propose that:
- Starting on February 1, 2026, halving will be introduced, reducing the token issuance by 50% every four years (same model as BTC).
- From February 1, 2026, the maximum token supply is set at 21 million. (same model as BTC)
- From February 1, 2026, the minimum commission fee is reduced to 0%.
- All of the above changes are enshrined in JAM.
Comments (5)
Proposal Failed
Hello everyone,
I'm writing this comment because I consider that this tokeconomy is leading this fantastic project to the irrelevance.
And I totally agree with this proposal and the referenda 596 as well, where unfortunately it was rejected.
And I totally agree that Kusama is conceived as an innovation hub, but it's not enough to stay afloat in this high competitive sector.
This high inflation is killing Kusama and so it's led its price to plummet during the last years.
And this is quite concerning and honestly frustrating, for the reason that Kusama is always the top in term of innovation and decentralization (smart contracts, 623K TPS, high decentralization); but at the same time it seems that all these improvements are not enough to bring it as it was several years ago.
Keep in mind what happened recently to Zcash (ZEC), where in less than three months the price dramatically increased due to the news of a supply cap, bringing this crypto in the top 20.
Without offence but Zcash is not as useful as Kusama, as well as not so innovative.
So in my opinion, implementing this thing is fundamental to keep alive Kusama and attract new people in it, like what happened with Polkadot which has already a supply cap.
Best
I think this referenda should be proposed through the time until it will be passed and implemented, because it's vital to modify the tokeconomy of Kusama.
This coin is dying due to high inflation, and nobody gets a benefit from this!
Look what happened in the recent month to Zcash due to a fixed circulating supply