COIN SPECIFICATION
Last updated
Last updated
Inflation
SkyPirl is inflationary; there is no maximum number of SkyPirl. Inflation is designed to be approximately 10% annually, with validator rewards being a function of the amount staked and the remainder going to treasury. The current token supply of SkyPirl is ~156,306,732.71, as a result of redenomination.
There is an ideal staking rate that the network tries to maintain. The goal is to have the system staking rate meet the ideal staking rate.
The system staking rate would be the total amount staked over the total token supply, where the total amount staked is the stake of all validators and nominators on the network. The ideal staking rate accounts for having sufficient backing of SkyPirl to prevent the possible compromise of security while keeping the native token liquid. An ideal staking rate of 50% stabilizes the network. SkyPirl is inflated according to the system staking rate of the entire network.Monetary Policy and block rewards distribution
If the amount of tokens staked goes below the ideal rate, then staking rewards for nominators goes up. On the contrary, if it goes above, staking rewards drop. This is a result of the change in the percentage of staking rewards that go to the Treasury.
x-axis: Proportion of SkyPirl staked
y-axis: Inflation, annualized percentage
Blue line: Inflation rewards to stakers
Green line: Staker rate of return
You can determine the inflation rewards by checking the staking overview on SkyPirl-JS Apps.
The above chart shows the inflation model of the network. Depending on the staking participation, the distribution of the inflation to validators/nominators versus the treasury will change dynamically to provide incentives to participate (or not participate) in staking.
For those who are interested in knowing more about the design of inflation model for the network, please see here.
10% inflation/year when the network launches
50% targeted active staking
~20% annual nominal return
Up until now, the network has been following an inflation model that excludes the metric of active parachains. The ideal staking rate is not always 50%, as the number of active parachains influences the available liquidity that is available to secure the network.
Keep in mind that when the system's staking rate is lower than the ideal staking rate, the annual nominal return rate will be higher, encouraging more users to use their tokens for staking. On the contrary, when the system staking rate is higher than the ideal staking rate, the annual nominal return will be less, encouraging some users to withdraw.
Tokens will be locked for about 28 days on SkyPirl after unbonding, seven days on Kusama.
Punishment in case of validator found to be misbehaving (see #slashing).
You want to use the tokens for a parachain slot.
