Proposal: Reduce $TOWNS Inflation Rate from 8% to 4%
Summary
This proposal recommends reducing the $TOWNS annual inflation rate from 8% to 4% in the next major upgrade. This marks the first reduction in the token’s inflation schedule and continues to follow the same annual disinflation curve established at launch.
Rationale
As the Towns ecosystem matures and adoption grows, it is increasingly important to balance incentive mechanisms with long-term monetary sustainability.
Reducing the inflation rate lowers the opportunity cost of holding and using $TOWNS as collateral, in staking, or within DeFi integrations.
This change is designed to:
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Strengthen $TOWNS as a reliable store of value and medium of exchange within the Towns ecosystem.
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Increase the attractiveness of $TOWNS-based staking and liquidity programs.
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Maintain consistent disinflation, ensuring predictable supply dynamics and improved capital efficiency.
Impact
The total annual issuance of $TOWNS will decrease by 50%, from 8% to 4%.
All other aspects of the tokenomics model, including the annual disinflation rate and staking reward distribution, will remain unchanged.
This adjustment aligns $TOWNS with the evolving economic activity across the network and supports sustainable value accrual for participants and builders.
Implementation
If approved, the reduction will take effect in the upcoming protocol upgrade. The change will be reflected in on-chain parameters that govern token issuance, and staking rewards will automatically adjust accordingly.