Since the LikeCoin chain was first launched on Nov 15 2019, the inflation rate of LikeCoin has been set to be 1%.
Meanwhile, the percentage of delegated LikeCoin is below 50% (49.89% as of Oct 5 2020), which is significantly lower than the idea threshold of 67%. On the other hand, with the passed Proposal #3, more and more validators are joining and thus on average each validator is getting less delegated LikeCoin. We thus propose to increase the inflation rate of LikeCoin from 1% to 2% to increase the incentive to delegate LikeCoin.
To increase the inflation rate from 1% to 2%
If the proposal is passed:
- The number of delegated LikeCoin will be increased.
- The reward to validators will be increased, balancing the effect of increased number of validators.
- The reward to stakeholders with their LikeCoin delegated will be increased.
- The dilution effect by inflation to undelegated LikeCoin will be increased.
- The number of migrated LikeCoin may be increased.