On May 23rd, Initia Foundation officially announced a new governance proposal called the "Inflation Adjustment and Unstaking Subsidy Plan" to address the abnormally high INIT inflation due to incorrect configuration since the network's launch on April 24th.
According to the proposal, the current annual INIT issuance rate of 5% of total INIT supply will be adjusted to 5% of staked INIT tokens in the year, equivalent to approximately 1.25% of total INIT supply annually. This helps bring inflation back to the original expectation and ensures sustainable development for the Initia ecosystem.
Additionally, Initia Foundation proposed an unstaking subsidy plan in two phases to support users affected by Proposal 39:
Group A Subsidy: For users who performed unstaking between May 20th and May 23rd (from the announcement of Proposal 39 to the new proposal), but canceled the unstake order and continued staking before the new proposal is implemented (expected on June 2nd). These users will be reimbursed for the staking rewards lost during the unstaking period.
Group B Subsidy: Applies to users with an unstaking period between June 2nd and June 23rd, who will receive a subsidy equivalent to 25% APR based on the actual number of days they were not staking.
Users need to submit subsidy requests through the Initia App before July 7th. The registration period will last 30 days and does not require Token Lockup when receiving rewards.
The proposal will be put to an on-chain vote at 14:00 on May 26th (Vietnam time). If approved, the proposal will be implemented on June 2nd. Initia Foundation also calls on the community to reject Proposal 39, to strengthen community trust and maintain a transparent and effective governance process.
