Overview & concepts

The Mint module is responsible for minting tokens to reward validators and delegators for helping secure the chain. The Mint module is responsible for the inflation in the chain.

The Minting Mechanism of the SGE Network chain

Unlike the default Mint Module of the Cosmos, which can vary the inflation rate dynamically based on the ratio of the bonded and the unbonded tokens at any point in time, the Mint module of the SGE Network chain follows a strict regime of inflation rates defined by the phases.

Phases

Phases are nothing but specific discreet time frames during which a certain inflation rate holds for the chain. Phases have two components:

1. duration: The duration is defined as the year_coefficient. It defines the time in years for which a phase will hold. For example, a year_coefficient of 0.75 means that the phase will last for 9 months, that is, 3/4th of a year.

2. inflation: This parameter defines the inflation rate of the chain for the phase in question. Inflation is defined as a decimal. That is inflation of 0.10000 means an inflation rate of 10%.

The duration and inflation rate of phases can be modified via governance. For more details about phases, visit phases.

If all the specified phases are over, the chain enters a special phase called the final_phase, where the phase duration is infinite and the phase inflation is zero. Note that the inflation rate does not depend on the number of bonded and unbonded tokens