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

I suggest that it be lowered in the future when network usage increases. Not right now.

To keep things organized, the second proposal has been moved to its own thread.
If you want to discuss the proposal about [Proposal: Balanced Inflation Strategy for Massa (Alternative Path)] please use the new topic here :
:backhand_index_pointing_right: https://forum.massa.community/t/proposal-balanced-inflation-strategy-for-massa-alternative-path/257

Let’s keep one proposal per thread to make discussions easier to follow, thanks !

Since this was proposed for MIP and heavily discussed, I wanted to give an opinion as the president of Massa Labs,the software development company behind the Massa node.

Massa Labs staking transparency

As of April 22nd, 2025, Massa labs is staking with the following accounts:

  • AU12Vi9V6Fsq9HMh9ge88WJ5cgymBGc3oUX2F6WpRqA5HdabPcPt5 => 81,101 Rolls
  • AU128Rexxftc1jYhyouTesxjPqeezEHh5LUAzNaAfqDo1dWRgPH8m => 10,000 Rolls
  • AU12L4gaQ8j8j5yBt2jSmcsmu51yZW2gLjnZr5rAWnjKJDNacR3jp => 42,263 Rolls

Total: 7% of the active total stake at the time.

Position

Technical assessment

Technically speaking, the proposed constant change does not cause any technical issues with the node, and is within reasonable bounds security-wise. The only thing to know is that the 1.02 MAS block reward was chosen to be divisible by 17 without generating too many decimals. A value of 0.4 will cause values like 0.023529412 MAS to be given to producers. But this is purely cosmetic.

Alignment with our goals

Giving more rewards to stakers means that the chain seems more attractive for node runners on the APY side, and node runners are a core part of the Massa ecosystem. However, the value that node runners cash out to pay their expenses and make profits is actually taken from non-staking users, and pushes the token price down. This also means that the stakers who dump more damage the value of the token for the ones who hold. The staking APY is comparatively high, and would remain compelling for node runners after this change if accepted.
We stand by our position: we want to stimulate the active usage of the blockchain by acquiring more users without hurting node runners and holders. For this, we believe that less value should be taken away from non-staking users. Acquiring new users is easier with less constant value loss for them, and a better-looking token price graph.
This of course is not enough to acquire users, and should be combined with outreach and marketing strategies, but at least it sets a more attractive basis to make those efforts more effective and successful. A successful user acquisition strategy would result into a general increase in overall node runner profits in a healthier and more durable way.

Vote

Massa Labs will vote in favor of the proposal.

That is about 13.39% with 0.4 today. Same APY as some different blockchains have, like STARKNET. They have lost about 80-90% of their value in one year, the same as Massa. It’s only gonna benefit private, seed round investors and the team. Newcomers are buying from the market.

As an alternative to this proposal, I submitted to the governance: Dynamic inflation

My rationale: Dynamic inflation - #21 by curiosithy

Governance proposal: https://mip.massa.net/proposals/2

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