Monetary Policy
DYM asset details
Property | Details |
---|---|
Token | |
Initial Total Supply | |
Decimals | |
Conversion |
DYM Issuance
The issuance of DYM tokens is a dynamic process based on the proportion of DYM tokens staked relative to the total supply. The Dymension protocol algorithmically operates on a set of predefined parameters.
Parameter | Value |
---|---|
Min Annual Issuance* | |
Max Annual Issuance* | |
Target DYM staked** | |
Inflation rate of change* |
* These parameters can be adjusted through onchain governance.
** RollApp bonds do not contribute to this staking calculation.
Algorithmic Issuance
The Dymension protocol adjusts the DYM issuance rate based on the actual staking ratio relative to the target:
- Below Target Staking: If the percentage of staked DYM is less than the target of 50%, the issuance rate will incrementally increase. This adjustment continues until it reaches the maximum rate of 8% or until the staking target is met.
- At Target Staking: When the staking ratio aligns with the 50% target, the current issuance rate remains unchanged.
- Above Target Staking: If the percentage of staked DYM is greater than the target of 50%, the issuance rate will incrementally decrease. This adjustment continues until it reaches the minimum rate of 2% or until the staking target is met.
Rate of Change Formula
The rate at which the DYM issuance adapts over the year is quantified by the following formula:
Example
For actual data please visit the Portal
- Current Inflation Rate: 21%
- Current Staked Ratio: 55% (i.e., total supply of DYM is staked)
- Staking Target: 50%
- Inflation Rate Change: 100%
The result of 55% staked DYM is a -10% absolute reduction in the inflation rate over the year resulting in an inflation rate 11%.