A proposal by the Pickle Core Devs

See this Google Doc for better formatting + charts.

Motivation

The community is concerned with the current monetary policy and the risks that it poses to the PICKLE ecosystem due to constant PICKLE emission leading to a high rate of annualized inflation.

The weekly halving schedule takes us to the end of Week 4, but does not specify any nuanced mechanisms beyond that. As a result, the Core Devs would like to propose an emission schedule beyond Week 4 to keep inflation in check.

Design Principles

These are the key points considered in the authoring of this proposal:

• To clamp down on annual inflation
• To maintain a PICKLE emission for farming to continue to exist
• To prevent systemic shocks by using smooth emission changes

The proposed design was strongly influenced by SIP-23 and SIP-24 of the Synthetix community. Read their blog post for more details on how those proposals were constructed.

Current Emission Schedule

For context, the current PICKLE emission schedule dictates a weekly halving for the first four weeks, with a subsequent 1 PICKLE per block to be minted thereafter.

Proposed Emission Schedule

The proposed schedule will feature a gradual decrease in PICKLE minting up until the end of the first year, after which a static amount will be minted in perpetuity.

Starting from Week 6 and ending at the end of Week 52, the number of PICKLEs minted will decline each week by 10% from the previous week.

After Week 52, PICKLEs minted will remain static each week (at approx. 329 PICKLEs per week), capping the overall annualized inflation rate at 1.29% and further decreasing over time.