240

Background and Context

The last inflation and community pool update was completed with [Hidden link] at the end of July.

As 2023 draws to a close, the Akash GPU marketplace has amassed over 160 GPUs, is running a full stack of AI workloads from inference to training, and has grown to become the most advanced and capable Supercloud.

Now, the work of scaling the network begins — and it starts with incentives.

Proposal

Now that scaling the network has become the foremost challenge driven by an influx of use cases and potential tenants, we are proposing to increase the community pool tax to ensure adequate funding to power provider and tenant incentives as well as the growing number of community initiatives that make SDXL on Akash and Akash Chat possible. The estimated calculations can be viewed [Hidden link].

1. Increasing the community pool tax from 25% to 40% to grow the community pool and ensure it is properly funded for provider/tenant incentives and other community initiatives.
2. Increase inflation from 8% to 13% to increase effective inflation and offset the economic impact on validators and stakers created by the increased tax. This will maintain incentives for securing the network. Please note that the actual impact to the effective inflation and staking APY are purely estimates and will depend on network-wide staking behavior.

The use of community pool proceeds is and always will be requested via governance proposal submissions and determined by detailed discussions within sig-economics, steering committee, and associated working group meetings.

Please stay tuned for a discussion about provider incentives that will be submitted soon after this proposal.