The Stellar Development Foundation proposes disabling the inflation mechanism in Stellar protocol v12, arguing it no longer benefits ecosystem projects and creates scalability issues. Validators will vote on the change, scheduled for October 28, 2019.
The Stellar Development Foundation has proposed eliminating the inflation mechanism from the Stellar protocol, citing two main reasons: inflation fails to support ecosystem projects as intended (most lumens go to individual account holders in pools rather than builders), and it creates scalability drag as the network grows. The SDF implemented the change in Stellar Core v12 via a Core Advancement Proposal that simply makes the inflation operation return an unsupported result code. Validators will vote on whether to accept this protocol upgrade, with the network-wide vote scheduled for October 28, 2019 at 16:00 UTC. If rejected, the SDF will release v13 without the inflation change and allow another vote later. The SDF plans to continue supporting ecosystem projects through grants and the Stellar Community Fund.
