CIP #1 - Reduce inflation and adjust token repartition

--- Summary ---

Modify the staking inflation schedule and the token repartition:

• reduce starting weekly emissions;
• add a parameter that allows a small dynamic adjustment to inflation;
• stop emissions decreasing after 20 years;
• decrease the global token allocation of staking, in favor of bonds.

--- Rationale ---

As for now, the inflation schedule plans to issue about 167k $CVG per week for 2 years, before decreasing emissions. Details here: https://docs.cvg.finance/cvg-token/tokenomics.

Convergence is an optimization protocol: its layer is able to boost APRs, even without $CVG emission (by enhancing each underlying protocol rewards). The protocol does not rely on its own inflation to propose a valuable product to underlying protocol users (i.e. Convergence would offer very competitive APRs without $CVG emission).

In addition, considering the initial supply of 1,109,015 $CVG, the weekly inflation rate will be significant during the first weeks.

As a result, we propose to modify the staking emission schedule to make it less inflationary, and longer.

The parameters of the proposal are the following:

• reduce the initial weekly emissions to 60,576 $CVG (a 64% reduction of the actual inflation);
• stop emissions decreasing after 20 years (instead of 30 initially).

Emissions will still be reduced by a factor 2^(1/2) every 2 years, for 20 years. After 20 years, the protocol will issue 1,893 $CVG weekly until the total staking inflation is released.

In order to be able to slightly lower or augment the amount of $CVG issued every week to stakers (to allow, for example, bootstrapping periods with higher emissions for new aggregations), we also propose the integration of a parameter, that would allow the DAO to modulate staking emissions.

The DAO would be able to reduce staking emissions to a minimum of 80% of the default inflation (60,576 $CVG per week), or to augment emissions to a maximum of 120% of the default inflation. Anything in between 80%, and 120% of the default inflation could be adopted.

As a result, for the first two years, weekly staking emissions would be capped between 48,461 and 72,692 $CVG, starting by default with 60,576 $CVG.

After two years, the first emission reduction will occur, and the default inflation will be 42,834 $CVG per week for staking emissions. Thus, emissions will be capped between 34,267 and 51,401 $CVG.

This mechanism will remain active for the entire lifetime of the staking inflation.

Considering that this new inflation framework will significantly augment the global inflation schedule of the protocol, we also propose to lower the amount of $CVG allocation toward staking, from 42% to 40% (63,000,000 to 60,000,000 tokens). The 2% saved will be allocated towards bonding, in order to boost Convergence’s ability to acquire treasury assets and POL.

Given the proposed inflation schedule for staking, the 60,000,000 $CVG would be emitted over 397 years, with 10.5% of the inflation being issued during the first 2 years.

--- Means ---

Modify the code that handles the inflation schedule (doesn’t add delay, as it’s only a few lines of code).

--- Vote ---

1- Adopt the new inflation schedule proposal; 2- Reject the proposal and keep the existing inflation schedule; 3- Abstain; 4- Do not take part in the vote.