Polkadot developer proposes inflation upgrade to enhance transparency

Polkadot developer, Kian Paimani, has put forward a proposal for a flexible inflation upgrade to address issues related to the blockchain’s inflation logic. The Polkadot relay chain currently faces challenges such as high inflation rates due to outdated infrastructure and ineffective influence of parachain slots on inflation. Adjusting the inflation rate is complex and requires manual intervention through source code modifications, rather than streamlined on-chain governance. The proposal aims to provide a framework for easier inflation rate adjustments through a new “pallet_inflation,” offering greater transparency and comprehension of inflation mechanisms. If approved, the upgrade promises smoother parameterization through governance mechanisms, while separating inflation from staking logic. Paimani also noted that the proposal aligns with the economic vision outlined in the JAM Greypaper and has the potential to be used in newly onboarding parachains.