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5 changes: 3 additions & 2 deletions cips/cip-041.md
Original file line number Diff line number Diff line change
Expand Up @@ -4,7 +4,8 @@
| description | Reduce inflation to 2.5% and increase minimum validator commission to 10% to improve TIA's suitability for financial applications |
| author | Callum Waters (@cmwaters), Nashqueue (@nashqueue) |
| discussions-to | <https://forum.celestia.org/t/cip-reduce-issuance-to-2-5-and-increase-minimum-commission-to-10/2103> |
| status | Review |
| status | Last Call |
| last-call-deadline | 2025-09-02 |
| type | Standards Track |
| category | Core |
| created | 2025-07-28 |
Expand All @@ -25,7 +26,7 @@ In addition, to ensure the validator revenue remains sufficient enough for a pro
The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT", "SHOULD", "SHOULD NOT", "RECOMMENDED", "NOT RECOMMENDED", "MAY", and "OPTIONAL" in this document are to be interpreted as described in RFC 2119 and RFC 8174.

1. **Reduce Inflation Rate**: Decrease the current inflation rate from 5% to 2.5% in the next major upgrade (v5)
2. **Increase Minimum Commission**: Raise the minimum validator commission from 5% to 10% via governance vote
2. **Increase Minimum Commission**: Raise the minimum validator commission from 5% to 10% as a migration in the next major upgrade (not via governance)
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medium

This change clarifies that the minimum commission increase will be implemented as a migration, not via a governance vote. However, this contradicts the Backwards Compatibility section, which still states on line 101: 'This will need to be done as a governance proposal...'. Please update the Backwards Compatibility section to align with this change for consistency.

3. **Maintain Disinflation Rate**: Keep the existing 6.7% annual disinflation rate unchanged
4. **Reward Distribution**: The reward distribution mechanism remains unchanged—rewards are still allocated pro rata to stakers and validators

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