Mint
Contents
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 actual percentage of bonded tokens 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 actual percentage of bonded tokens is above the goal %-bonded the inflation rate will decrease until a minimum value is reached
State
Minter
The minter is a space for holding current inflation information.
Minter:
0x00 -> ProtocolBuffer(minter)
Params
The mint module stores its params in state with the prefix of 0x01
, it can be updated with governance or the address with authority.
Params:
mint/params -> legacy_amino(params)
Begin-Block
Minting parameters are recalculated and inflation paid at the beginning of each block.
Inflation rate calculation
Inflation rate is calculated using an "inflation calculation function" that's passed to the NewAppModule
function. If no function is passed, then the SDK's default inflation function will be used (NextInflationRate
). In case a custom inflation calculation logic is needed, this can be achieved by defining and passing a function that matches InflationCalculationFn
's signature.
NextInflationRate
The target annual inflation rate is recalculated each block. The inflation is also subject to a rate change (positive or negative) depending on the distance from the desired ratio (67%). The maximum rate change possible is defined to be 13% per year, however, the annual inflation is capped as between 7% and 20%.
NextAnnualProvisions
Calculate the annual provisions based on current total supply and inflation rate. This parameter is calculated once per block.
BlockProvision
Calculate the provisions generated for each block based on current annual provisions. The provisions are then minted by the mint
module's ModuleMinterAccount
and then transferred to the auth
's FeeCollector
ModuleAccount
.
Parameters
The minting module contains the following parameters:
Key | Type | Example |
---|---|---|
MintDenom | string | "uatom" |
InflationRateChange | string (dec) | "0.130000000000000000" |
InflationMax | string (dec) | "0.200000000000000000" |
InflationMin | string (dec) | "0.070000000000000000" |
GoalBonded | string (dec) | "0.670000000000000000" |
BlocksPerYear | string (uint64) | "6311520" |
Events
The minting module emits the following events:
BeginBlocker
Type | Attribute Key | Attribute Value |
---|---|---|
mint | bonded_ratio | {bondedRatio} |
mint | inflation | {inflation} |
mint | annual_provisions | {annualProvisions} |
mint | amount | {amount} |
Client
CLI
A user can query and interact with the mint
module using the CLI.
Query
The query
commands allows users to query mint
state.
annual-provisions
The annual-provisions
command allows users to query the current minting annual provisions value
Example:
Example Output:
inflation
The inflation
command allows users to query the current minting inflation value
Example:
Example Output:
params
The params
command allows users to query the current minting parameters
Example:
gRPC
A user can query the mint
module using gRPC endpoints.
AnnualProvisions
The AnnualProvisions
endpoint allows users to query the current minting annual provisions value
Example:
Example Output:
Inflation
The Inflation
endpoint allows users to query the current minting inflation value
Example:
Example Output:
Params
The Params
endpoint allows users to query the current minting parameters
Example:
Example Output:
REST
A user can query the mint
module using REST endpoints.
annual-provisions
Example:
Example Output:
inflation
Example:
Example Output:
params
Example:
Example Output:
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