On Thursday, community members of Canto, a layer 1 blockchain based on Cosmos, will cast votes on three proposals that propose to lower liquidity mining incentives and the rate of block reward issuance.
It is theorized that holders of CANTO tokens would benefit from the proposed changes, as they would result in a decrease of the total inflation rate.
If the proposals are approved, the mining incentives for ETH/CANTO and ATOM/CANTO liquidity pools on Canto will be reduced by an average of 38%, as mentioned in a blog post. Moreover, the inflation rate of CANTO tokens per block will be decreased to 4.76 CANTO, which is a 15% reduction.
In February, the members of the Canto community passed a vote to reduce emissions from security and liquidity mining incentives. At the time, contributors commented that the project had already achieved success in drawing “deep liquidity” to both the Canto DEX and Canto Lending Market, and that they were now seeking to enhance the longevity of Canto’s incentive program.
Set to go live on May 11, the recent governance proposals are a further measure to reduce block rewards, also known as “security emissions”, and liquidity mining rewards across the board.
According to Canto docs, the total max supply of $CANTO inflates over time at a rate that is continuously decreasing in order to maintain the security of the Canto network.
Block rewards are given to stakers as security emissions for securing the network, while users who provide liquidity to crypto pools on Canto are rewarded with liquidity mining incentives.
At press time, CANTO, the native token for the Canto blockchain used to pay gas fees, had decreased 2.6% in the past 24 hours and was trading at 22 cents, according to CoinGecko.