Voting on the Decimal Blockchain: Implementing Technical Solutions to Stabilize Tokenomics
On March 15, Decimal hosted a vote aimed at implementing technical solutions to stabilize the tokenomics of the project and its main asset, the DEL coin. The following initiatives were proposed as part of the vote:
- Changing the APR to 36% per year with a subsequent annual decrease to 15% and maintaining this level.
- Limiting the accrual of rewards to the maximum calculated APR. In case the number of coins available for distribution is exceeded, the remaining coins will be reallocated to steaks delegated for a period of 1 year or more.
- Ability to set any delegation period (HOLD) with the definition of the block height for unlocking. Steaks delegated for 1 year or more will receive additional rewards from unbonded rewards.
- Reducing the unbond period to 15 days.
By a majority vote, it was decided to implement these initiatives. The following describes what will be done within each initiative and how it will affect tokenomics.
1. Project APR changes
Change Description: The number of rewards awarded in each block has been revised and changed. From a certain block X there is a fixed amount Y of rewards, which increases at certain time intervals.
Impact on tokenomics: The planned coin issuance remained unchanged, but the time period for mining was increased. This led to a gradual decrease in the APR of the Decimal project. During the first year, the APR decreased to 42%, the second year to 31%, the third year to 25%, and in the last year of issuance, the APR is 14%. The total duration of token mining will increase by 8 years.
2. limitation of remuneration accrual to the maximum calculated APR.
Description of changes: An updated system of reward accrual has been implemented. Now X amount is deducted from 90% of the pool of rewards on validators, which is accrued equally proportionally on steaks delegated for long term.
Impact on tokenomics: Incentivizing with additional rewards increases the amounts and terms of staked assets, which provides additional security for the network and prevents “over-charging” of coins from steaking.
3. Ability to set a time limit for delegating a steak (HOLD)
Description of changes: The delegation procedure now includes new parameters that allow users to delegate a steak for an extended period of time (from a year). This delegation is optional and allows for additional rewards.
Impact on tokenomics: The appeal of additional rewards reduces the amount of funds in free circulation, reducing pressure on the market and the price of the asset.
4. Reduction of the period of withdrawal of steak (unbond)
Change description: The coin withdrawal period from the validator has been reduced from 30 days to 15 days.
Impact on tokenomics: Reducing the withdrawal period increases the attractiveness of steaking and coin usage.