STP.05 is a collection of six separate updates to inflation on Songbird. It has been designed to streamline the inflation process, plus better align Songbird with the Flare network, for example by implementing an annual inflation cap.
Full information on all of the proposed changes can be found on the Governance Proposals Repository and a brief summary is provided below. Wrap your SGB by 24 June to be able to participate in the voting process.
- Align the time slots for more precise calculation of inflation: The proposal is to reduce the time slot on Songbird from 1 year to 30 days to match the time slot on Flare.
- Accrue Unclaimed Rewards across time slots: Currently funds do not accrue across time slots on Songbird. With the reduction in time slot length, the recommendation is to simultaneously ensure funds can be accrued to ensure rewards are always available to be claimed.
- Adjust inflation formula so only minted & claimed inflation is counted in the inflatable balance: On Songbird, even if inflation is not claimed, it becomes part of the calculation for future inflation.
- Implement a Songbird Inflation Cap: From year 3 onwards, Flare’s inflation is set to 5% of inflatable balance with a cap of 5B (5,000,000,000), while Songbird’s inflation is set to 6% with no cap.
- Monitor both burn addresses: Songbird uses two burn addresses, but only one is being monitored when calculating the circulating supply.
- Update the Flare Foundation management process: SGB amounts are currently updated through a governance multi-signature account. For efficiency and more precise $SGB balance bookkeeping, STP.05 proposes making all updates for the Flare Foundation through the Supply contract.
Note: This proposal has been designated a STP not a SIP because some of the updates will be proposed on Flare should testing be successful on Songbird.
