# Mint
# Concepts
# The Minting Mechanism
The minting mechanism was designed to:
- allow for a flexible inflation rate determined by market demand targeting a particular bonded-stake ratio
- effect a balance between market liquidity and staked supply
In order to best determine the appropriate market rate for inflation rewards, a moving change rate is used. The moving change rate mechanism ensures that if the % bonded is either over or under the goal %-bonded, the inflation rate will adjust to further incentivize or disincentivize being bonded, respectively. Setting the goal %-bonded at less than 100% encourages the network to maintain some non-staked tokens which should help provide some liquidity.
It can be broken down in the following way:
If the inflation rate is below the goal %-bonded the inflation rate will increase until a maximum value is reached If the goal % bonded (67% in Cosmos-Hub) is maintained, then the inflation rate will stay constant If the inflation rate is above the goal %-bonded the inflation rate will decrease until a minimum value is reached
# Parameters
The subspace for the Mint module is mint
.
type Params struct {
// type of coin to mint
MintDenom string `protobuf:"bytes,1,opt,name=mint_denom,json=mintDenom,proto3" json:"mint_denom,omitempty"`
// maximum annual change in inflation rate
InflationRateChange github_com_cosmos_cosmos_sdk_types.Dec `protobuf:"bytes,2,opt,name=inflation_rate_change,json=inflationRateChange,proto3,customtype=github.com/cosmos/cosmos-sdk/types.Dec" json:"inflation_rate_change" yaml:"inflation_rate_change"`
// maximum inflation rate
InflationMax github_com_cosmos_cosmos_sdk_types.Dec `protobuf:"bytes,3,opt,name=inflation_max,json=inflationMax,proto3,customtype=github.com/cosmos/cosmos-sdk/types.Dec" json:"inflation_max" yaml:"inflation_max"`
// minimum inflation rate
InflationMin github_com_cosmos_cosmos_sdk_types.Dec `protobuf:"bytes,4,opt,name=inflation_min,json=inflationMin,proto3,customtype=github.com/cosmos/cosmos-sdk/types.Dec" json:"inflation_min" yaml:"inflation_min"`
// goal of percent bonded atoms
GoalBonded github_com_cosmos_cosmos_sdk_types.Dec `protobuf:"bytes,5,opt,name=goal_bonded,json=goalBonded,proto3,customtype=github.com/cosmos/cosmos-sdk/types.Dec" json:"goal_bonded" yaml:"goal_bonded"`
// expected blocks per year
BlocksPerYear uint64 `protobuf:"varint,6,opt,name=blocks_per_year,json=blocksPerYear,proto3" json:"blocks_per_year,omitempty" yaml:"blocks_per_year"`
}
# MintDenom
- type:
string
# InflationRateChange
- type:
sdk.Dec
# InflationMax
- type:
sdk.Dec
# InflationMin
- type:
sdk.Dec
# GoalBonded
- type:
sdk.Dec
# BlocksPerYear
- type:
uint64