Postpone Proof of Support Emissions by at least One (1) Year

Original Proposal Text

**Summary** This proposal asks the TX community to: 1. **Complete three more months of PSE distributions (September, October, November)** as scheduled, then 2. **Postpone all remaining Proof of Support Emissions (PSE) distributions by at least a one (1) year target**, shifting the balance of the PSE schedule forward by twelve months, and 3. **Adjust the protocol inflation parameters to target an APY of 24% during the PSE postponement period**. The purpose is disciplined near-term supply management: allowing demand, utility, and on-chain economic activity to develop while preserving the long-term PSE framework and the network’s capacity to scale. PSE is not cancelled and not redesigned—remaining distributions are deferred by at least one year. More specifically, * **Twelve-Month PSE Pause:** The final PSE distribution before the proposed pause will occur on **November 6, 2026**. Following that distribution, PSE will target a suspension of twelve consecutive monthly distribution periods, with no regularly scheduled PSE distributions occurring during the pause. * **Automatic Resumption:** Unless a subsequent governance proposal is approved to extend the pause, PSE will automatically resume on **December 6, 2027**. This provides the ecosystem with a clear and predictable policy timeline while preserving the ability to consider a longer pause before the scheduled resumption date. **Motivation** Pausing Proof of Support Emissions will establish a defined cap on PSE-driven circulating supply for the foreseeable future. During the pause, no additional TX will enter circulation through PSE, giving the ecosystem time to develop and navigate current market conditions and launch products without continued monthly supply expansion. This measure is intended to bring greater discipline and predictability to the TX economy. By holding PSE-driven supply constant, growth in adoption, token utility, transaction volume, liquidity, and broader economic activity can strengthen the demand side of the ecosystem against a more stable supply foundation. This foundation is intended to provide a near-term predictable supply that will support product and network adoption and growth. The pause will allow TX to focus on building the products and infrastructure necessary to support sustainable long-term growth, including the TX Super App, SoloTex, TX Market, DeFi applications, and additional real-world asset initiatives before considering any further expansion of circulating supply through PSE. This proposal does not abandon the original PSE framework or TX’s long-term vision. It applies a monetary-policy mechanism incorporated into the network’s design to respond responsibly to its current stage of development. Future PSE emissions will be considered only after one year and only if the ecosystem has demonstrated sufficient adoption, utility, and economic activity to support additional PSE at that time. Approving this proposal will: * Postpone all new circulating supply generated through PSE; * Give adoption, utility, and economic activity time to develop against a stable PSE supply base; * Strengthen confidence in the discipline and long-term management of the TX economy; * Allow the network to prioritize demand-generating products, token utility, and ecosystem growth; and * Preserve the community’s ability to consider a future PSE framework when economic conditions justify further expansion. This is a disciplined measure designed to strengthen TX today while preserving its capacity to scale in the future. By approving the pause, validators will provide the ecosystem with greater supply certainty and create a stronger foundation for sustainable demand, utility, and long-term growth. **Proposed Actions** A. November 2026 distribution proceeds as scheduled * The **November 2026 PSE distribution** shall proceed in accordance with the then-current PSE schedule and module rules. * All PSE clearing-account distributions for that November cycle (including the community staker allocation) shall be executed as scheduled. * November 2026 is the **last PSE distribution under the current (pre-postponement) dates**. B. Postpone remaining PSE distributions by at least one year * All **remaining** PSE distributions scheduled after November 2026 shall be **postponed by at least twelve (12) months**. * Practically, each remaining monthly distribution date on the PSE schedule shall be shifted forward by one year (for example, a distribution that would have occurred in December 2026 would instead occur in December 2027, and so on through the remainder of the original schedule). * During the twelve months following the November 2026 distribution: * **No PSE distributions** shall occur under the prior dates. * Undistributed PSE tokens shall **remain non-circulating** until their postponed distribution dates. * The original **84-month PSE design and 100 billion TX PSE framework** remain unchanged in substance. This proposal does not cancel PSE, reduce the PSE allocation, or alter allocation percentages among clearing accounts; it **defers the remaining release schedule by at least one year**. C. Protocol inflation parameters target 24% APY * Concurrently with the PSE postponement, governance shall **adjust the network’s inflation parameters to target an APY of 24% during the PSE postponement period** (Cosmos SDK mint / inflation target, as applicable on TX mainnet). **Immediately upon the reactivation of PSE distributions, the inflation parameters shall be reverted to the settings in place prior to the postponement period.** * Native staking rewards funded by protocol inflation shall continue according to the updated inflation parameter and existing staking / distribution module rules. * PSE and protocol inflation remain separate mechanisms: this proposal postpones remaining PSE releases while maintaining validator and delegator incentives via the adjusted inflation rate. What does **not** change * The long-term vision for TX as a global RWA and digital asset network * The original PSE design intent and the **100 billion TX** PSE allocation framework * Allocation shares among PSE clearing accounts * Eligibility principles for community PSE on postponed distribution dates (active staking / score-based community distribution, as defined by the PSE module) * Validator operations and native staking, subject to the updated **24% APY target** inflation parameters Rationale for combining a one-year PSE postponement with a 24% APY target PSE is a scheduled release of pre-allocated emissions into circulation. Protocol inflation funds ongoing staking rewards for network security. Postponing remaining PSE distributions by one year reduces near-term circulating supply expansion from monthly PSE releases, while adjusting inflation parameters to **target an APY of 24% during the PSE postponement period** provides a clear, predictable staking-incentive baseline so validators and delegators continue to secure the network during that period. **Following the conclusion of the postponement, inflation parameters will revert to their prior settings to coincide with the resumption of PSE.** Voting options * **Yes** — Approve postponing remaining PSE distributions by one year after the November 2026 distribution, and adjust inflation parameters to target an APY of 24% during the PSE postponement period, as specified above. * **No** — Reject this proposal; retain the current PSE schedule and inflation parameters. * **Abstain** — Participate in quorum without expressing a preference. * **No with veto** — Reject and signal that the proposal is harmful or improperly formed (per TX governance rules). More details: Postpone Proof of Support Emissions by at least One (1) Year