github.com/Finschia/finschia-sdk@v0.49.1/x/mint/spec/01_concepts.md (about)

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     5  # Concepts
     6  
     7  ## The Minting Mechanism
     8  
     9  The minting mechanism was designed to:
    10  
    11  - allow for a flexible inflation rate determined by market demand targeting a particular bonded-stake ratio
    12  - effect a balance between market liquidity and staked supply
    13  
    14  In order to best determine the appropriate market rate for inflation rewards, a
    15  moving change rate is used.  The moving change rate mechanism ensures that if
    16  the % bonded is either over or under the goal %-bonded, the inflation rate will
    17  adjust to further incentivize or disincentivize being bonded, respectively. Setting the goal
    18  %-bonded at less than 100% encourages the network to maintain some non-staked tokens
    19  which should help provide some liquidity.
    20  
    21  It can be broken down in the following way:
    22  
    23  - If the inflation rate is below the goal %-bonded the inflation rate will
    24     increase until a maximum value is reached
    25  - If the goal % bonded (67% in Cosmos-Hub) is maintained, then the inflation
    26     rate will stay constant
    27  - If the inflation rate is above the goal %-bonded the inflation rate will
    28     decrease until a minimum value is reached