Posting here since the Proposal category is set to “read only” for me, feel free to move the topic there.
I propose the establishment of a semiannual vote on Casper Network’s Monetary Policy, including the setting of the network’s seignorage rate.
My proposal suggests that the Validators will be given the following options to vote for: current inflation rate, current -2 percentage points, current -1 percentage point, current +1 percentage point, current +2 percentage points.
This is to ensure a gradual adjustment of token dynamics. The 6-month period between votes is sufficient for: 1) observation of monetary effects 2) community discussion of upcoming changes 3) stability in delegator and partner expectations.
Decision rule: Weighted average → sum of (-2,-1,0,1,2) x (% of participating stake voted for each option), rounded to the nearest integer
Example: Vote for the desired inflation rate for the next 6 months
Results:
(Rate) 10% 9% 8% 7% 6%
(Stake) 2% 2% 40% 20% 36%
Calculation and decision:
2(0.02)+1(0.02)+0(0.4)+(-1)0.2+(-2)0.36 →-0.86 →Rounded to -1 →Reduce inflation by 1%
Εdit: Regarding enforcement, there could be a co-ordinated chainspec configuration in a reasonable timeframe post-vote. If for whatever reason this fails, then the decided upon seignorage rate should be baked in the next network upgrade. If for whatever reason the Association considers the decided upon rate to be critically destabilizing for the network, they should present their argument and defer the matter to a yes/no final vote or a repeat of the weighted average vote.