Duration = 38 mins

Objective:

Review of DAO budgeting and inflation rate.

Agenda:

• Budget/inflation control

Inflation Rate Calculation

Chaos77 suggested making the inflation rate 1.2-1.8% of the total supply, excluding validator payouts and governance. Tomato mentioned that current inflation rate with just validators is 1.26%. Chaos77 explained that validated rewards are based on a reward curve, which shows that as more people stake their tokens for validation, their rewards will decrease over time.

Budgeting in USD or JOY

Tomato suggested moving towards using USD values like EMA30 price for stability in long term budgeting while Chaos77 asked if we should use $JOY or USD for budgeting purposes.

Working Group Salaries and Extra Costs

A discussion on how to estimate relatively stable salaries of working groups throughout the term and allocate extra costs such as marketing initiatives without cutting everyone's salaries because validators are getting paid more.

Validator Rewards Impact on Inflation A discussion on whether to look at validator rewards separately from governance spending since it is an unknown factor due to its volatility caused by staking rates increasing or decreasing over time.

Inflation Control The challenge of controlling inflation while making salaries and compensation fair for workers was discussed. A debate on whether to denominate all budgets and salaries in USD or $JOY. The stability of workers rewards was argued, over controlling inflation. However, it was acknowledged that tying payments to USD values would make accounting messy.

Payment Denomination Leet_Joy discussed on shifting slowly towards paying workers closer to USD adequate values for their work while keeping staking rewards tied to Joy tokens. He mentioned that some groups like storage and distribution are already being compensated in USD values, but tying all payments to USD could lead to daily adjustments based on market flow.