Initia has released a proposal for inflation adjustment and stake exit subsidies, aiming to significantly reduce the inflation rate to an annualized 1.25%.

PANews, May 23 - The Initia Foundation has released a governance proposal on its official forum, proposing to correct the current release rate of 5% of the total annual supply of INIT to the initially set "5% of the stake supply," which equates to an annual total supply of 1.25%. This correction stems from a parameter configuration error during the genesis on April 24, which resulted in inflation being nearly four times higher than originally planned. The foundation also proposed two types of subsidy plans aimed at compensating users for losses in staking收益 due to Proposal 39. The subsidies will be covered by the foundation's treasury, and users can apply for them in the Initia App before July 7, with no lockup requirements. On-chain voting will start on May 26 at 14:00 and will be executed or rejected on June 2. The foundation recommends voting against the original Proposal 39 to safeguard the credibility of community governance.