Aleph Zero Blog
Governance Fundamentals

AZERO Gets a 520M Supply Cap and Exponentially Decreasing Inflation. Vote Results

Sep 30, 2024

AI Summary

Here's your AI summary of AZERO Gets a 520M Supply Cap and Exponentially Decreasing Inflation. Vote Results on Aleph Zero blog

Top 10 key takeaways:

  1. Community Decision: The Aleph Zero community has successfully concluded a four-phase vote to shape the network's future economy.
  2. Max Supply Cap: A maximum supply of 520 million AZERO coins has been established.
  3. Inflation Model: An exponentially decreasing inflation model will replace the previous fixed rate, starting with 27 million AZERO minted in the first year.
  4. Predictable Token Supply: The new model aims to create a more predictable and sustainable token supply over time.
  5. Economic Balance: These changes are designed to reduce inflationary pressure and enhance the value proposition of AZERO.
  6. Community Involvement: The community's active participation has been crucial in shaping these economic changes.
  7. Implementation Timeline: The new economic model will first be tested in a test environment, with a planned Mainnet rollout by mid-October.
  8. Technical Testing: Thorough testing will ensure the new inflation mechanics work as intended before going live.
  9. Ongoing Updates: The community will be kept informed about the progress and any necessary adjustments during the testing phase.
  10. Future Governance: The changes mark a new era where community governance plays a pivotal role in the network's development.
AI Summary

The community has chosen the parameters that will shape Aleph Zero’s future economy, which will begin taking effect already in October. Here’s why you should care!

We are thrilled to announce the successful conclusion of the four-phase community vote on Aleph Zero’s new economic model! These historic votes mark the Aleph Zero community’s active shaping of how the network operates—and the results are both exciting and transformative for the future of our ecosystem.

Introducing the max supply and new emission model

After discussions over proposals and on-chain voting on gov.alephzero.org powered by Syncra, the Aleph Zero community has voted to introduce two key changes to the network’s economy:

  • Introducing a Max Supply of 520 Million AZERO: A significant decision that establishes a total cap on AZERO coins. This change ensures that inflation is now constrained within a defined limit, creating a more predictable token supply over time.
  • Exponentially Decreasing Inflation: The community has agreed on an inflation model that will gradually decrease. It will start with 27 million AZERO minted in the first year after the changes are introduced. This new model replaces the previous rate of 30 million AZERO minted per year and will adjust the token supply in a more sustainable way.

Here’s how it will shape the supply over the next few years.

Why these changes matter

Previously, the inflation model on Aleph Zero had no maximum supply, and the network was minting 30 million AZERO per year. By capping the total supply at 520 million and introducing an exponentially decreasing inflation model, the community has taken an important step toward creating a more balanced and sustainable economy for the network, which is the result of the Aleph Zero community’s consensus.

These changes align with long-term goals such as reducing inflationary pressure, enhancing AZERO’s value proposition, and providing a more predictable tokenomics structure that benefits developers, users, and holders alike.

We’re building Aleph Zero together

We are deeply grateful for everyone’s active participation and thoughtful engagement in the Aleph Zero ecosystem. This is the start of a new era, in which the community is playing a pivotal role in shaping the network’s future.

With the votes now concluded, we are moving forward with the technical implementation of these changes. The updated economic model will first be rolled out in the test environment to ensure everything runs smoothly. If no issues are found, we anticipate that the changes will go live on Mainnet by mid-October.

This timeline gives us the opportunity to thoroughly test the new inflation mechanics, making sure the transition is seamless and that the new parameters work as intended. We will keep the community informed about the progress in the test environment and any adjustments that may be needed along the way.

As we look forward to implementing these changes, we are excited to continue building a network where community governance plays a key role in shaping the future of Aleph Zero.

Stay tuned for more updates as we move toward the next chapter of our journey—and thank you once again for making your voice heard!