StarkWare releases STRK inflation management proposal, which will affect the total supply cap of STRK tokens

ChainCatcher news, StarkWare has released a proposal for the STRK inflation model, with the inflation formula being M=0.4 * √ S, where S is the token staking rate, implying a maximum annual inflation rate of 4%. This inflation model aims to reward stakeholders for their contributions to the network and manage the inflation expectations of STRK by setting a cap on the inflation rate to maintain moderate inflation.

The proposal consists of two main parts: the more tokens staked, the higher the total minting rate (to ensure that stakers receive sufficient rewards); the more tokens staked, the lower the staking rewards (to balance the needs of stakers with the need to control inflation). This will allow the market to adjust the staking rate and ensure adequate staking. Currently, there are 10 billion STRK on Starknet, and if this proposal is enacted, the cap will be raised.