Update on Router Chain Mainnet Launch
In this post, we examine some parameter settings for the smooth launch and network bootstrapping of the Router Chain.
We are excited to announce that the Router Protocol mainnet will go live on July 30th at roughly 2:00 PM UTC. This marks a significant milestone in our journey towards a fully decentralized, secure, and interoperable blockchain ecosystem.
Key Points:
- Native Chain Staking Rewards:
-Staking rewards will begin accumulating for users immediately upon mainnet launch
-These rewards are in addition to the StakeDrop APY boost and rewards committed from the Router Ecosystem for long-term believers - Governance and Staking Parameters:
The Router Foundation introduces the following launch parameters. These parameters are essential for launching the network and can be configured by governance.
-Router Protocol: Inflation (min, max) = (4%, 7%). This means the minimum inflation on the Router chain will be 4%, and the maximum inflation will be 7%. The reasoning for these parameters is discussed below.
-Goal Bonded Ratio: 67% (2/3rd of the chain supply staked for security).
For context, these parameters are comparable to other Cosmos ecosystem chains:
3.) Ecosystem Staking & Inflation Management:
- Approximately 333.33 million tokens from the ecosystem supply have been staked.
- Staking rewards earned by unvested ecosystem supply will be burned monthly.
- Effective chain inflation equals (Total inflation—supply burned from Ecosystem rewards)/Total supply, as shown below in the rightmost column.
This mechanism is expected to result in the following adequate chain inflation:
These parameters balance incentivizing network participation for higher community staking with maintaining long-term token value. Based on the current staked supply (413M), we expect adequate inflation to be under 1.5%.
With the launch of Router Chain, we are excited to embark on this transition and herald a new dawn in chain abstraction.
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