GP008: Active reward control


Proposal GP008 details a strategy for maintaining control over ZIL inflation while ensuring competitive returns for both miners and stakers. This proposal introduces an active reward control mechanism that includes regular revisions of reward levels in line with network conditions and governance decisions. By adopting this measure, we hope to responsibly manage ZIL inflation, maintain fair rewards for participants, and further enhance the financial health and sustainability of the Zilliqa network.


We will start to exert active control of inflation on the Zilliqa network, safeguarding both ZIL holders and miners against the sudden inflation changes that accompany software performance improvements on Zilliqa.


With the release of Zilliqa 9.2.0, block production rate has seen significant improvement, leading to more epochs per day and, consequently, a substantial increase in rewards. To responsibly control ZIL inflation and maintain competitive returns for miners and stakers, we propose an active reward control mechanism. This would entail monthly revisions of reward levels, taking into consideration:

  • Responsible limitation of ZIL inflation;
  • Maintenance of a reward quantity approximately equivalent to the quantity issued in version 8.1.x, accounting for any modifications due to passed governance measures;
  • Assurance of industry-competitive returns for miners and stakers.

On a monthly basis, a designated committee, initially the Zilliqa internal governance committee, will publish to the ZIP repository as notes:

  • Revised reward rates and their effective dates, if any changes have been made;
  • Introduced proposals and the voting results that led to the revision;
  • A concise explanation for any adjustments.

Should this proposal pass, the core elements of this policy, including the approach to ZIL inflation control and the reward adjustment mechanism, will be formalised into a ZIP for further clarity and ease of reference.

It’s worth noting that initial adjustments for miners will be gradual due to the requirement of a network upgrade. However, we plan to transition this configuration on-chain in future Zilliqa releases to facilitate more nuanced updates.

  • For - implement the proposed mechanism
  • Against - allow inflation to fluctuate with changes in block speed
0 voters

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