hey @Cosmic_Validator really appreciate your feedback! I don’t have much more to add than what @WillB already said.
The Cosmos Hub is paying way too much for security when compared to almost every other PoS network in the space. Additionally, while inflation can be seen as a tax on non-stakers, it also causes large supply overhangs that negatively affects ATOM price. If everyone re-staked their inflation, ATOM bond ratio would continue to trend above 70%, but we have only seen this happen a select few times in the Hub’s history.
The dynamic inflation security model is outdated with the advent of liquid staking, but you have a valid point about the 25% global limit! We encourage you to read our new post here that seeks to remove this max cap.
It is important to note that we took some inspiration from the supply schedule of SOL while also looking at the issuance rate of ETH (which is a function of how much ETH is staked to the network). SOL is planning on reaching 1.5% base inflation rate by ~2029 and ETH will issue ~1.2% if/when ~67-70% supply is staked (assuming ~120M ETH supply). Its important to compare ATOM to other assets in its vertical, and a minimum bound of 7% inflation is much too high.
If the community decides to lower the min bound to 3% (which was discussed by Jae and others in prior ATOM 2.0 debates), our supply schedule would actually kick out the time to reach that level by over a year - giving the AEZ time to generate more revenue.
Ultimately, we are confident a more set supply schedule is the way to go to create more certainty around ATOM. While our proposed inflation schedule may seem aggressive, we hope the community can come to an agreement on removing the dynamic inflation schedule first THEN coming to an agreement on what this new supply curve should look like.