2.2% of circulating supply.
In the current state, the emissions can fall anywhere between 1.9% (best case, average price of $0.3) and 2.7% (linear worst case, Celo price falls to $0.09) by April 2026 (exactly 1 year of Community RPC nodes). In reality we expect it to fall somewhere in between but generally closer to 1.9% because I don’t expect Celo price to tank that much by April and we are already roughly 67% through the first year of the Great Halvening Tokenomics change.
There needs to be some solid modelling and forecasting around all this before we pull this lever and I hope this discussion is factored in the next tokenomics design. Emissions are an integral part of any ecosystem and we just can’t ignore it. There are also a lot of other technical decisions to factor in e.g. The existing staking model is coupled strongly with validators/validator groups. This decision also affects every voter since they vote for a group and it also affects their yields if the group decided to wound down because they are no longer part of the elected set. In short…there are too many risks and factors that this proposal doesn’t take into account but they do exist.
Personally I hope the tokenomics design review results in some sort of high quality modelling or forecasting like this cLabs paper.