A lot of people have asked what happens when the 50% participation target is reached on the network.
Each round (about a day), the protocol looks at the current participation rate. It is 43.7% as of the writing of this post. If the participation rate is less than the
participationTarget (50% currently), then the
inflation rate increases by
inflationChange. If the participation rate is greater than the
participationTarget, then the
inflation rate decreases by
inflationChange. That’s essentially it. The inflation creeps up slowly or down slowly depending on if current participation is above or below the target.
3 / 1000000.
inflation (as of the time of this writing is
1442 / 1000000 (see https://etherscan.io/address/0x8573f2f5a3bd960eee3d998473e50c75cdbe6828#readContract).
So if participation rate were under 50% then next round inflation would be
1445 / 1000000. If participation rate were over 50% then next round inflation would be
1439 / 1000000. Inflation rate can not be less than 0. Inflation is by round, and not by year, so to apply an inflation rate of
1442 / 1000000 for example, you would multiply the number of current LPT by 1442 and then divide by 1000000 to get the number of new token for the current round.
Hope that helps. Any questions?