# \[PROPOSAL\] Set Min Inflation at 0% **URL:** \ **Category:** Hub Proposals\ **Created:** [November 23, 2023, 7:27pm UTC](https://forum.cosmos.network/t/proposal-set-min-inflation-at-0/12224 "2023-11-23T19:27:03Z")\ **Posts on this page:** 1\ **Showing post:** 4
**Author:** ![Govmos](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/govmos/32/5806_2.png) [@Govmos](https://forum.cosmos.network/u/Govmos)\ **Post date:** [November 24, 2023, 10:16am UTC](https://forum.cosmos.network/t/proposal-set-min-inflation-at-0/12224/4 "2023-11-24T10:16:31Z")
## **CONTEXT:** In response to the recent proposals regarding setting the maximum inflation rate at 10%, there is a crucial concern about the proposed minimum inflation rate of 7%. While establishing a maximum inflation rate is important for staking incentives and network security, the suggested minimum rate poses an issue. The concern is that, theoretically, even with 100% of the token supply staked, the network would continue to produce an additional 7% of tokens annually, a situation uncommon in other functioning blockchain models. ## **ANALYSIS:** The rationale behind setting the maximum inflation rate at 20% to reward contributors and incentivize staking is valid. However, the introduction of consumer chains adds complexity to the equation. The proposal suggests adjusting the minimum inflation rate to 0% for flexibility. This would allow stakeholders to fine-tune the percentage of bonded tokens based on emission rate incentives, especially in the absence of significant revenue from consumer chains. ## **CONCLUSION:** While the proposal acknowledges the adaptability of Cosmos, it is crucial to consider a more comprehensive approach to the inflation debate. The current focus on minimum and maximum inflation rates might oversimplify the issue. There’s a need for a global inflation reform centered on a formula for adjusting inflation, backed by competent economic knowledge, data analysis, and mathematics. This approach would ensure a more nuanced and informed decision-making process aligned with the reference quality expected in Cosmos governance. – We invite the governance to start a dedicated topic on the formula’s reform instead of adjusting the parameters independently without a comprehensive framework. We think this reform should be data driven. Thank you for reading, [![pro-delegators-sign](https://canada1.discourse-cdn.com/flex031/uploads/cosmos1/original/2X/3/3d138289b87945115dfe59a6604e139bf36aeb94.png)](https://www.mintscan.io/visualization/validators/prodelegators) --- _[View the full topic](https://forum.cosmos.network/t/proposal-set-min-inflation-at-0/12224)._