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Decide and set testnet tokenomics parameters: mintCap, dinPerEth, and DinEmission values

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#155 9 comments 1 reaction 3 assignees View on GitHub

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@abrahamnash is already working on this.

Since Sep 25, 2026.

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Description

help wanted question

Context

Raised as a blocker in discussion #150. These are decision items — the contract code is ready or nearly ready, but the actual values have not been agreed on. Without them, the faucet is uncapped, emission is undeployable, and external validators cannot onboard.

Parameters needed

Faucet cap — DinCoordinator.setMintCap()

The mechanism exists. The current devnet value is mintCap = 0 (uncapped by design). For testnet, a cap is needed to give slashing meaningful economic weight — a slashed validator should not be able to instantly re-stake at zero cost by minting more DIN.

Decision needed: what total DIN supply ceiling should the testnet faucet enforce? This should be set relative to the expected validator count and a realistic staking amount per validator.

Exchange rate — DinToken.setDinPerEth()

Currently 1,000,000 DIN/ETH — a devnet round number with no principled basis. For testnet this should be set so that a validator depositing a reasonable testnet ETH amount gets enough DIN to stake above MIN_STAKE without also being trivial to re-stake after a slash.

Decision needed: what should dinPerEth be on testnet, and who has authority to change it post-deploy? (Currently bare owner() — §9 item 13 in MECHANISM_DESIGN.)

DinEmission constructor parameters — PR #148

The DinEmission contract (PR #148, CI green) is ready to deploy but takes constructor arguments with no agreed values:

Parameter What it controls
initialEmissionPerGI DIN minted per GI at epoch 0 — sets baseline validator earnings from protocol subsidy
decayBps Fraction of current emission retained each epoch (e.g. 9000 = 10% decay per epoch)
epochLength Number of GIs per epoch
maxEpochs Total epochs before subsidy ends

Decision needed: all four values. PR #147 (reward-split simulation) provides the income-stability framework to calibrate initialEmissionPerGI against.

Partial-slash fractions — PR #146

PR #146 proposes s1SlashFractionBps = s2SlashFractionBps = 3000 (30%) as the default for S1 (missed audit vote) and S2 (missed aggregation submission). These are DAO-settable post-deploy, but the default is what every slash runs at until governance changes it.

Decision needed: confirm 30% or revise before PR #146 is merged.

Why this blocks testnet

  • Without mintCap set, unlimited DIN can be minted — slashing has no teeth
  • Without agreed DinEmission parameters, PR #148 cannot be finalised and deployed, and validators earn nothing from protocol subsidy
  • Without dinPerEth set intentionally, the staking economics are arbitrary

Related

  • Discussion #150 (tokenomics section)
  • PR #146 (slash fractions)
  • PR #147 (reward simulation)
  • PR #148 (DinEmission contract)
  • MECHANISM_DESIGN §9 items 2, 13
Dominant language
Python
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3d 5h
Merged PRs (30d)
34

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