Thank you for your well articulated response. Respect. What I mean in the above example is that once the CP ATOM is staked, rewards are paid out and most of those rewards are inflation. If the Community Pool ATOM continues to sit in the treasury without being staked, there are no additional ATOM emissions to pay staking rewards on that ATOM.
You said, “As for the max ATOM inflation being reduced to 10%. You are right that it impacts the revenue that pSTAKE can share with the CP but the benefits still outweigh the reduced revenue aspect. My personal opinion is that with a reduced max inflation parameter, ATOM bonding ratio might take a short term hit, but the unbonded ATOMs should flow into DeFi - either directly or in the form of Liquid Staked ATOM.”
But ATOM flowing into DeFi doesn’t help ATOM validators and there is no way that the 15% being paid to Cosmos by Persistence can make up the difference of lower profitability for small validators. We believe this is a very important point. @Cosmic_Validator points this out in their response to the 10% inflation discussion here: [PROPOSAL] Set Max Inflation at 10% - #33 by Cosmic_Validator The discourse from @jaekwon is interesting too, that the inflation is meant to penalize those who don’t stake and secure the chain. The risk of reducing the bonded ratio because inflation has been lowered might not be worth the security risk: [PROPOSAL] Set Max Inflation at 10% - #28 by jaekwon
Love hearing that you guys have hired kick ass devs and that you intend to upscale your marketing. I sincerely wish you and your team the best.