Current Situation:

Currently, Proton inflation stands at 4%, with the inflationary rewards dispersed among various entities as follows:

- 1% - Block Producer rewards

- 1% - Consortium

- 1% - Staking rewards

- 1% - XPR/USDC yield farm

Total: 4% inflation

Proposed Changes:

I propose this is reduced to 3% entirely removing Consortium pay.

- 1% - Block Producer rewards

- 1% - Staking rewards

- 1% - XPR/USDC yield farm

Total: 3% inflation

Reasons:

Below is the rationale for the change:

• % differences in inflation matter when it comes to managing an economy which XPR Network is

• Consortium members should submit grants for any work done that can be judged on their merit, not get a blanket annual paycheck when we don't even know what they do in terms of value for that

• It should be an honorary role taken on by people who want to volunteer and give up their time to the XPR Network community and help it drive forward, and not one rooted in financial incentives, especially not at a time when the community is having to dig deep to pay for lots of things

• Currently, community members including builders and block producers need to submit a grant proposal which goes through a rigorous process. The same process should apply to everyone equally. Certain individuals should not be paid upfront.

• The members of the Consortium are either businesses/BPs already making lots of revenue from staking or other work they do related to this ecosystem, or the crypto ecosystem as a whole. They benefit from being on the Consortium already without the need for financial compensation.