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The x/inflation module mints new Evmos tokens and allocates them in daily epochs according to the Evmos Token Model distribution to

  • Staking Rewards 40%,
  • Team Vesting 25%,
  • Usage Incentives: 25%,
  • Community Pool 10%.

It replaces the currently used Cosmos SDK x/mint module.

The allocation of new coins incentivizes specific behaviour in the Evmos network. Inflation allocates funds to 1) the Fee Collector account (in the sdk x/auth module) to increase staking rewards, 2) the x/incentives module account to provide supply for usage incentives and 3) the community pool (managed by sdk x/distr module) to fund spending proposals.


  1. Concepts
  2. State
  3. Hooks
  4. Events
  5. Parameters
  6. Clients



In a Proof of Stake (PoS) blockchain, inflation is used as a tool to incentivize participation in the network. Inflation creates and distributes new tokens to participants who can use their tokens to either interact with the protocol or stake their assets to earn rewards and vote for governance proposals.

Especially in an early stage of a network, where staking rewards are high and there are fewer possibilities to interact with the network, inflation can be used as the major tool to incentivize staking and thereby securing the network.

With more stakers, the network becomes increasingly stable and decentralized. It becomes stable, because assets are locked up instead of causing price changes through trading. And it becomes decentralized, because the power to vote for governance proposals is distributed amongst more people.

Evmos Token Model

The Evmos Token Model outlines how the Evmos network is secured through a balanced incentivized interest from users, developers and validators. In this model, inflation plays a major role in sustaining this balance. With an initial supply of 200 million and over 300 million tokens being issued through inflation during the first year, the model suggests an exponential decline in inflation to issue 1 billion Evmos tokens within the first 4 years.

We implement two different inflation mechanisms to support the token model:

  1. linear inflation for team vesting and
  2. exponential inflation for staking rewards, usage incentives and community pool.

Linear Inflation - Team Vesting

The Team Vesting distribution in the Token Model is implemented in a way that minimized the amount of taxable events. An initial supply of 200M allocated to vesting accounts at genesis. This amount is equal to the total inflation allocated for team vesting after 4 years (20% * 1B = 200M). Over time, unvested tokens on these accounts are converted into vested tokens at a linear rate. Team members cannot delegate, transfer or execute Ethereum transaction with unvested tokens until they are unlocked represented as vested tokens.

Exponential Inflation - The Half Life

The inflation distribution for staking, usage incentives and community pool is implemented through an exponential formula, a.k.a. the Half Life.

Inflation is minted in daily epochs. During a period of 365 epochs (one year), a daily provision (epochProvison) of Evmos tokens is minted and allocated to staking rewards, usage incentives and the community pool. The epoch provision depends on module parameters and is recalculated at the end of every epoch.

The calculation of the epoch provision is done according to the following formula:

periodProvision = exponentialDecay       *  bondingIncentive
f(x) = (a * (1 - r) ^ x + c) * (1 + maxVariance * (1 - bondedRatio / bondingTarget))

epochProvision = periodProvision / epochsPerPeriod

where (with default values):
x = variable = year
a = 300,000,000 = initial value
r = 0.5 = decay factor
c = 9,375,000 = long term supply

bondedRatio = variable = fraction of the staking tokens which are currently bonded
maxVariance = 0.0 = the max amount to increase inflation
bondingTarget = 0.66 = our optimal bonded ratio
Example with bondedRatio = bondingTarget:

period periodProvision cumulated epochProvision
f(0) 309 375 000 309 375 000 847 602
f(1) 159 375 000 468 750 000 436 643
f(2) 84 375 000 553 125 000 231 164
f(3) 46 875 000 600 000 000 128 424


State Objects

The x/inflation module keeps the following objects in state:

State ObjectDescriptionKeyValueStore
PeriodPeriod Counter[]byte{1}[]byte{period}KV
EpochIdentifierEpoch identifier bytes[]byte{3}[]byte{epochIdentifier}KV
EpochsPerPeriodEpochs per period bytes[]byte{4}[]byte{epochsPerPeriod}KV
SkippedEpochsNumber of skipped epochs bytes[]byte{5}[]byte{skippedEpochs}KV


Counter to keep track of amount of past periods, based on the epochs per period.


Identifier to trigger epoch hooks.


Amount of epochs in one period

Genesis State

The x/inflation module's GenesisState defines the state necessary for initializing the chain from a previously exported height. It contains the module parameters and the list of active incentives and their corresponding gas meters :

type GenesisState struct {
// params defines all the parameters of the module.
Params Params `protobuf:"bytes,1,opt,name=params,proto3" json:"params"`
// amount of past periods, based on the epochs per period param
Period uint64 `protobuf:"varint,2,opt,name=period,proto3" json:"period,omitempty"`
// inflation epoch identifier
EpochIdentifier string `protobuf:"bytes,3,opt,name=epoch_identifier,json=epochIdentifier,proto3" json:"epoch_identifier,omitempty"`
// number of epochs after which inflation is recalculated
EpochsPerPeriod int64 `protobuf:"varint,4,opt,name=epochs_per_period,json=epochsPerPeriod,proto3" json:"epochs_per_period,omitempty"`
// number of epochs that have passed while inflation is disabled
SkippedEpochs uint64 `protobuf:"varint,5,opt,name=skipped_epochs,json=skippedEpochs,proto3" json:"skipped_epochs,omitempty"`


The x/inflation module implements the AfterEpochEnd hook from the x/epoch module in order to allocate inflation.

Epoch Hook: Inflation

The epoch hook handles the inflation logic which is run at the end of each epoch. It is responsible for minting and allocating the epoch mint provision as well as updating it:

  1. Check if inflation is disabled. If it is, skip inflation, increment number of skipped epochs and return without proceeding to the next steps.
  2. A block is committed, that signalizes that an epoch has ended (block header.Time has surpassed epoch_start + epochIdentifier).
  3. Mint coin in amount of calculated epochMintProvision and allocate according to inflation distribution to staking rewards, usage incentives and community pool.
  4. If a period ends with the current epoch, increment the period by 1 and set new value to the store.


The x/inflation module emits the following events:


TypeAttribute KeyAttribute Value
inflation"epoch_provisions"{fmt.Sprintf("%d", epochNumber)}
inflation"epoch_number"{strconv.FormatUint(uint64(in.Epochs), 10)}


The x/inflation module contains the parameters described below. All parameters can be modified via governance.

KeyTypeDefault Value
ParamStoreKeyMintDenomstringevm.DefaultEVMDenom // “aevmos”
ParamStoreKeyExponentialCalculationExponentialCalculationA: sdk.NewDec(int64(300_000_000))
R: sdk.NewDecWithPrec(50, 2)
C: sdk.NewDec(int64(9_375_000))
BondingTarget: sdk.NewDecWithPrec(66, 2)
MaxVariance: sdk.ZeroDec()
ParamStoreKeyInflationDistributionInflationDistributionStakingRewards: sdk.NewDecWithPrec(533333334, 9) // 0.53 = 40% / (1 - 25%)
UsageIncentives: sdk.NewDecWithPrec(333333333, 9) // 0.33 = 25% / (1 - 25%)
CommunityPool: sdk.NewDecWithPrec(133333333, 9) // 0.13 = 10% / (1 - 25%)

Mint Denom

The ParamStoreKeyMintDenom parameter sets the denomination in which new coins are minted.

Exponential Calculation

The ParamStoreKeyExponentialCalculation parameter holds all values required for the calculation of the epochMintProvision. The values A, R and C describe the decrease of inflation over time. The BondingTarget and MaxVariance allow for an increase in inflation, which is automatically regulated by the bonded ratio, the portion of staked tokens in the network. The exact formula can be found under Concepts.

Inflation Distribution

The ParamStoreKeyInflationDistribution parameter defines the distribution in which inflation is allocated through minting on each epoch (stakingRewards, usageIncentives, CommunityPool). The x/inflation excludes the team vesting distribution, as team vesting is minted once at genesis. To reflect this the distribution from the Evmos Token Model is recalculated into a distribution that excludes team vesting. Note, that this does not change the inflation proposed in the Evmos Token Model. Each InflationDistribution can be calculated like this:

stakingRewards = evmosTokenModelDistribution / (1 - teamVestingDistribution)
0.5333333 = 40% / (1 - 25%)

Enable Inflation

The ParamStoreKeyEnableInflation parameter enables the daily inflation. If it is disabled, no tokens are minted and the number of skipped epochs increases for each passed epoch.


A user can query the x/incentives module using the CLI, JSON-RPC, gRPC or REST.


Find below a list of evmosd commands added with the x/inflation module. You can obtain the full list by using the evmosd -h command.


The query commands allow users to query inflation state.


Allows users to query the current inflation period.

evmosd query inflation period [flags]


Allows users to query the current inflation epoch provisions value.

evmosd query inflation epoch-mint-provision [flags]


Allows users to query the current number of skipped epochs.

evmosd query inflation skipped-epochs [flags]


Allows users to query the total supply of tokens in circulation.

evmosd query inflation total-supply [flags]


Allows users to query the inflation rate of the current period.

evmosd query inflation inflation-rate [flags]


Allows users to query the current inflation parameters.

evmosd query inflation params [flags]


Update Params

Allows users to submit a MsgUpdateParams with the desired changes on the x/inflation module parameters. To do this, you will have to provide a JSON file with the correspondiong message in the submit-proposal command.

For more information on how to draft a proposal, refer to the Drafting a proposal section.

evmosd tx gov submit-proposal proposal.json [flags]



gRPCevmos.inflation.v1.Query/PeriodGets current inflation period
gRPCevmos.inflation.v1.Query/EpochMintProvisionGets current inflation epoch provisions value
gRPCevmos.inflation.v1.Query/ParamsGets current inflation parameters
gRPCevmos.inflation.v1.Query/SkippedEpochsGets current number of skipped epochs
gRPCevmos.inflation.v1.Query/TotalSupplyGets current total supply
gRPCevmos.inflation.v1.Query/InflationRateGets current inflation rate
GET/evmos/inflation/v1/periodGets current inflation period
GET/evmos/inflation/v1/epoch_mint_provisionGets current inflation epoch provisions value
GET/evmos/inflation/v1/skipped_epochsGets current number of skipped epochs
GET/evmos/inflation/v1/total_supplyGets current total supply
GET/evmos/inflation/v1/inflation_rateGets current inflation rate
GET/evmos/inflation/v1/paramsGets current inflation parameters