Summary
This proposal reflects RingDAO’s strategic shift, emphasizing RING as a governance token with a deflationary supply model. The changes aim to:
- Eliminate ongoing supply inflation
- Reduce long-term liquidity and market-making pressures
- Strengthen RING’s scarcity and supply-demand balance
- Alleviate Treasury deficit concerns
Additionally, a minor adjustment will be made to the Collator Staking and Kton Staking incentive model, ensuring that staking rewards remain sustainable under the new framework.
Part 1: Eliminating Future RING Issuance (Deflationary Model)
To transition RING into a deflationary asset, we propose to completely remove new token issuance by eliminating the following inflation mechanisms:
- RING Issuance and Inflation Logic
Key Impacts of This Change:
✅ RING becomes deflationary, as no new issuance will dilute existing holders.
✅ Treasury deficit pressure is alleviated, preventing uncontrolled inflation-driven expenses.
✅ Supply-demand dynamics stabilize, strengthening RING’s value and long-term sustainability.
✅ Long-term liquidity and market-making burdens decrease, as excess supply is no longer entering circulation.
Under the existing model, an estimated 200M RING (+-5%) would have been issued over the next few years. By canceling inflation, this supply expansion is completely removed, ensuring a scarcity-driven economic model for RING.
Part 2: Minor Adjustments to Collator Staking & Kton Staking
Since the previous staking incentives were tied to inflation, we propose a transition to a fixed Treasury-funded reward structure while maintaining the incentive model with minor modifications.
Key Adjustments:
- Future staking rewards will be directly funded from the existing Treasury, rather than through new token issuance.
- To ensure predictability, the staking incentive pool is set as:
- 40M RING allocated to Collator Staking
- 40M RING allocated to Kton Staking
- This fixed allocation is based on the previous model, where each category was expected to receive approximately 20% of the discontinued inflation supply.
- No additional inflation-based staking incentives will be introduced, ensuring a controlled and predictable reward structure.
Key Impacts of This Change:
✅ Collator and Kton Staking remain incentivized, ensuring network liveness and participation.
✅ Staking rewards are now fixed and predictable, avoiding uncertainty from inflationary issuance.
✅ The Treasury remains in control of fund distribution, balancing sustainability with incentivization.
Next Steps
If this on-chain proposal passes, we will proceed with a formal whitelist runtime upgrade, subject to technical committee review.
This runtime proposal will be submitted via Substrate referenda whitelist origin, meaning it will not require another RingDAO vote. Once the runtime upgrade is completed, the changes outlined in this proposal will become effective on Darwinia Chain.
References
https://github.com/orgs/ringecosystem/discussions/4
Temp Check
[https://github.com/orgs/ringecosystem/discussions/22]
(https://github.com/orgs/ringecosystem/discussions/22)
