TIP-176: Add continuous staking rewards deflation

id	Title	Status	Author	Description	Discussions to	Created
TIP-176	Add continuous staking rewards deflation	Draft	Danijel	Add continuous staking rewards deflation		2023-10-12

Simple Summary

This TIP proposes to reduce base staking rewards every round by 0.5% compared to previous one

Motivation

Per initial THALES tokenomics, staking rewards were planned with a fixed schedule of 3 years with gradual declines. This is due to a finite number of THALES tokens.
Since the initial tokenomics, there were many changes to exact staking rewards, but I believe we need to implement a smooth linear decline which will continuosly and almost seemlessly on a week per week level reduce base rewards by 0.5%.

Specification

On every staking round closing the rewards for next week will be set to 0.99x of the last rewards cycle. This makes up for a ~23% annual decrease in rewards, but in result will make the rewards sustainable for a longer period.

Variables

weeklyDecrement = 0.995

Copyright

Copyright and related rights waived via CC0.