Proposal to Reduce Massa Blockchain Yearly Inflation to 2.5% ( Block reward 0.4)

Regarding Lower Inflation

Massa’s system already includes a built-in mechanism to reduce inflation over time, contributing naturally to long-term stability. Adjusting this further, especially before Massa achieves a strong ecosystem and adoption base, could have unintended consequences and risks.

On Liquidity

Liquidity will increase organically as the ecosystem develops and more dApps are built. With greater adoption, we’ll see rising innovation, liquidity, and Total Value Locked (TVL). Forcing changes prematurely could stifle this natural growth.

Decentralization and Reward Mechanisms

Reward mechanisms should respect the level of investment and risk each participant undertakes. Equal rewards regardless of input aren’t feasible or effective. If one participant stakes 100 rolls and another stakes 1,000, the latter receives more reward, reflecting both their higher commitment and risk. Major blockchains like Ethereum and Bitcoin don’t operate on an “equality” model for this reason.

True decentralization is best achieved organically. I’ve proposed a sustainable solution to foster healthy decentralization and resilience: Massa Fusion Nodes Proposal. Fusion Nodes could lead to a stronger network and fairer incentives for all participants.

Token Burn Mechanism

A token burn within the protocol itself could discourage dApp growth by reducing incentives. To truly become deflationary, we need a thriving ecosystem of 100+ dApps, high community engagement, and millions of daily transactions. Look at Ethereum and Solana: robust activity has naturally led to deflation. Even ICP has become deflationary recently, despite still being in early stages with a few active dApps.

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