BitSong
  • Introduction
  • Delegators
    • Delegator FAQ
    • Delegator Security
  • Validators
    • Validator Overview
    • Validator FAQ
    • Validator Security
  • Relayer
  • FAQ
  • Glossary
  • Roadmap
  • Media Kit
  • Links
  • Blockchain
    • Install go-bitsong
    • Join the Mainnet
    • Create Validator
    • CLI Guide
    • Gas and Fees
    • Pruning of State
    • Export the state
    • Verify Mainnet
    • Upgrades
      • From v0.8.0 to v0.10.0
      • From v0.10.0 to v0.11.0
      • From v0.12.x to v0.13.0
      • From v0.13.x to v0.14.0
      • From v0.14.x to v0.15.0
      • From v0.17.0 to v0.18.0
  • Features and Modules
    • Fan Tokens
    • Merkledrop
    • NFTs
    • Marketplace
    • CosmWasm
      • Install rust
      • Deploy a Smart Contract
    • IBC
    • Auth
    • Bank
    • Crisis
    • Capability
    • Community Pool
    • Distribution
    • Evidence
    • Governance
    • Mint
    • Staking
    • Slashing
    • Upgrade
  • BTSG
    • What is BTSG ?
    • Distribution and Tokenomics
    • Wallets
    • Buy and Sell
    • Liquidity Provider
  • Developers
    • bitsongJS
  • PRODUCTS
    • Sinfonia
    • BitSong Studio
  • USEFUL GUIDES
    • How to Create a BitSong wallet
    • How to Import Your BitSong Wallet
    • How to Stake $BTSG
    • How to Add $BTSG Liquidity to Osmosis Pools
    • Sinfonia User's Guide
    • How to Report a Bug on Sinfonia
  • Global Ambassador Program
    • Who is an ambassador?
    • Program Rules
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  1. Features and Modules

Mint

The minting mechanism was designed to:

  • allow for a flexible inflation rate determined by market demand targeting a particular bonded-stake ratio

  • effect a balance between market liquidity and staked supply

In order to best determine the appropriate market rate for inflation rewards, a moving change rate is used. The moving change rate mechanism ensures that if the % bonded is either over or under the goal %-bonded, the inflation rate will adjust to further incentivize or disincentivize being bonded, respectively. Setting the goal %-bonded at less than 100% encourages the network to maintain some non-staked tokens which should help provide some liquidity.

It can be broken down in the following way:

  • If the inflation rate is below the goal %-bonded the inflation rate will increase until a maximum value is reached

  • If the goal % bonded (67% in BitSong) is maintained, then the inflation rate will stay constant

  • If the inflation rate is above the goal %-bonded the inflation rate will decrease until a minimum value is reached

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Last updated 3 years ago