Why Secret Needs Fixed Emission Rates

1

Switch to Fixed Block Rewards Instead of Percentage Inflation

The Problem

Secret Network mints new SCRT based on a percentage of total supply (~9% inflation). As supply grows, this means MORE SCRT minted every year forever. This is unsustainable.

  • Year 1: 337M supply × 9% = 30M SCRT minted

  • Year 10: 550M supply × 9% = 50M SCRT minted

  • Emissions accelerate indefinitely

  • SCRT price is designed to go to zero!

The Solution

Fixed block rewards - mint the same amount per block regardless of supply.

Example: 4 SCRT per block = 21M SCRT/year (constant)

Result: Inflation naturally decreases over time

  • Today: 6.2% inflation, 14.7% APR

  • Year 5: 4.8% inflation, 11% APR

  • Year 10: 3.9% inflation, 9% APR

Benefits

:white_check_mark: Predictable emissions - never grows
:white_check_mark: Sustainable long-term tokenomics
:white_check_mark: Still competitive staking rewards
:white_check_mark: 30% less inflation immediately

What this means realistically

  1. Developers modify the mint module

  2. Testnet testing

  3. Software upgrade proposal + vote

  4. Validator upgrade

Thoughts?

Should Secret move to fixed per-block emissions like mature PoS chains?

2 Likes
2

Something needs to be done. A burn of 50% of what has been inflated so far should be the first step. Your idea could work, will they actually implement these steps? I doubt it.