Abstract

This proposal will reduce AIUS token emissions to miners by 50% by extending the halving cycle from 1 year to 2 years in the Engine contract. This change will decrease inflation at the cost of lower staking APR.

Motivation

Current token emissions create significant inflationary pressure on AIUS. By reducing emissions by 50%, we can improve long-term token sustainability and value accrual while maintaining network security through existing validator incentives.

Key Goals

Halving Cycle: The period after which mining rewards are reduced by half

Emission Rate: The rate at which new AIUS tokens are distributed to miners

Staking APR: Annual percentage return for veAIUS stakers

Thesis

The proposal modifies the targetTs function in V2_EngineV6 to change the emission schedule from t/(606024365) to t/(606024365*2), effectively doubling the time between halvings. This results in:

• 50% reduction in daily emissions to miners

• Lower inflation rate for AIUS token

• Reduced staking APR as rewards are shared from mining emissions

• No changes to validator mechanics or security model

Execution

1. Update V2_EngineV6 contract targetTs function (already implemented in v6)

2. Community vote on Snapshot

3. If passed, deploy contract upgrade through proxy

4. No additional testing required as change is minimal

Risks and Mitigations

• Risk: Lower staking APR may reduce veAIUS participation

• Mitigation: Monitor staking rates post-implementation and adjust if needed

• Risk: Reduced mining incentives could impact solver participation

• Mitigation: Fee market should compensate as base rewards decrease

Timeline

• Snapshot vote: 1 week

• Implementation: Immediate upon passing (contract already prepared)

Overall Cost

No implementation costs - contract changes are complete and only require deployment through existing upgrade mechanism.