|Network||Ethereum & Optimism|
Lower the target staking ratio to 55%
This SCCP lowers the target staking ratio from 85% down to 55%.
SIP-202 was implemented to increase the staking ratio within the network. At the time of implementation the inflation rate was adjusted from ~300k per week to 800k per week, it was then rebased for several months until it was eventually paused by SCCP-196 at 2.23m SNX per week. It should be noted that SCCP-196 did not modify the correct parameters within SIP-202, baseInflation is modified each week based on the staking ratio, the correct approach should have been to modify the variables: positiveAdjustment, negativeAdjustment and decayRate to 0%. Regardless this SCCP overrides SCCP-196 and modifies the targetStakingRatio from 85% to 55%. This means if this SCCP passes the inflation rate will be reduced by 10% per week if the staking ratio is over 60% and by 5% per week if it is between 50%-60%. Given the current staking ratio of ~70% this should result in a steady reduction in inflation over the next few months, but it also ensures that if a significant number of stakers unstake based on this change, resulting in less than 50% of SNX being staked, that inflation will once again increase to offset this drop. This ensures the inflation rate remains responsive to the behaviour of stakers within the network.
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