Governance, staking and mint parameters updates + Fund community pool
Neutron proposal #1: Neutron is entering Long Term maintenance mode. Therefore, it is important to optimize the network for resilience and community-leadersh...
Yes
100%
No
0%
Abstain
0%
Veto
0%
Original Proposal Text
Neutron is entering Long Term maintenance mode. Therefore, it is important to optimize the network for resilience and community-leadership, such that validators, stakers and builders may continue to shepherd the network in the absence of a dedicated maintainer. Much of this has already been achieved with the transition to the more standard/robust staking, mint and governance modules, and the following parameter changes are meant to complete this work and enable the DAO to function reliably going forward. This proposal seeks community approval to update core parameters across the `gov`, `mint`, and `staking` modules. It also seeks to fund the Community Pool with tokens that previously were owned by the Main DAO contract but were transferred to the Governance module itself instead of the Community Pool in the Neutron v11 upgrade. Main transferred amounts are: ~3,722 ATOM, ~3,483 USDC, ~3,502,000 ASTRO, ~152 TIA and several other smaller denoms. The objective of these adjustments is to foster a more accessible governance ecosystem, enable the network's economic model to respond dynamically to market conditions, and optimize consensus for reliability. ## Parameter Changes Overview The table below outlines the current parameters alongside the proposed modifications: | **Module & Parameter** | **Current Value** | **Proposed Value** | **Primary Objective** | | --- | --- | --- | --- | | **`gov.MinDepositRatio`** | `0.1` (10%) | `0.01` (1%) | Lower governance entry barriers | | **`mint.InflationRateChange`** | `0.2` | `1.0` | Accelerate economic responsiveness | | **`mint.BlocksPerYear`** | `31536000` | `4505142` | Adjust the param according to the 7s block time | | **`staking.MaxValidators`** | `18` | `13` | Optimize consensus and block times | ## Detailed Rationale ### 1. Governance Module (`gov.MinDepositRatio`) - **Proposed Change:** Decrease from `0.1` to `0.01` - **Rationale:** The current minimum deposit ratio requires a substantial upfront financial commitment just to transition a proposal into the voting phase. By reducing this requirement to 1%, we significantly lower the barrier to entry for community-led initiatives. This change will encourage a more active governance process without compromising the spam-protection mechanics provided by the total deposit amount. ### 2. Mint Module (`mint.InflationRateChange`) - **Proposed Change:** Increase from `0.2` to `1.0` - **Rationale:** The `InflationRateChange` parameter dictates how quickly the network's inflation rate shifts to hit the target bonding ratio. A value of `0.2` reacts relatively slowly to market changes. Increasing this to `1.0` allows the network to adapt dynamically: if the bonding ratio drops below the ideal threshold, inflation will scale up rapidly to incentivize staking. Conversely, if the network is over-bonded, inflation will drop quickly to prevent unnecessary token dilution. ### Mint Module (`mint.BlocksPerYear`) - **Proposed Change:** Decrease from `31536000` to `4505142` - **Rationale:** The `BlocksPerYear` parameter defines the approximate amount of blocks the chain produces in a year. This param is needed to be updated because Neutron’s block is getting increased to ~7s from previous 1s. ### 3. Staking Module (`staking.MaxValidators`) - **Proposed Change:** Decrease maximum active validators from `18` to `13` - **Rationale:** Tighter validator sets drastically reduce network latency, streamline peer-to-peer communication during consensus, and lead to faster, more predictable block times. Refining the active set to the top 13 highly reliable infrastructure providers ensures maximum network throughput and stability. ## Voting Options - **YES:** Signifies approval for updating the parameters across the governance, mint, and staking modules as outlined above and also approves the funding the Community Pool with tokens currently held by the governance module. - **NO:** Signifies that you prefer keeping the current parameters as they are. - **NO WITH VETO:** Signifies strict disagreement with the proposal, and a desire to burn the proposer's deposit. - **ABSTAIN:** Signifies a desire to contribute to quorum without casting a definitive vote for or against the changes.