Deflationary Drivers: IIP 6
ION Improvement Proposal 6 (IIP 6) guts inflation and introduces new services and fee structures that drive deflation. Adoption of this proposal would bring about the biggest shift in ION's monetary policy to date, simultaneously improving ION as a store of value and expanding the utility of the ION blockchain.
ION Improvement Proposal 6 is now available for public review. Voting begins September 3rd and closes after thirty days. If implemented, the IIP will bring deflationary drivers to the ionomy platform, eventually reducing the entire ION supply and thus concentrating the network’s value in a smaller number of coins.
After a year of strong building and feature enhancement throughout the ionomy ecosystem, the time is right to advance the evolution of ION’s monetary policy that simultaneously slows ION creation to a trickle and activates a fee burning mechanism.
Turning off the faucet
Disinflation is carried out by shrinking the block reward size from its current value of 5.75 ION to 0.5 ION. By minimizing dilution, this change improves ION as a store of value.
Deflation of the existing ION supply will be accomplished through two methods — burning portions of network fees (for both ION and token transactions) and burning ION as part of the brand new Proof of Transaction (POTX) protocol which is also part of the IIP.
Tokens drive deflation
Token transaction fees are assessed for all on-chain ATP (Atomic Token Protocol) token transactions. ATP is currently running on testnet, and tokens go live around September 16th. While token creation fees are collected and distributed as XDM, every other ATP token transaction will require a small fee denominated in ION, if IIP 6 is implemented. A portion of each of ATP fee is burned and the rest is distributed.
New blockchain service drives deflation
The other deflationary driver is the Proof-of-Transaction protocol, which brings transparency to any platform, business, or government by allowing transactions to be memorialized and verified by a corresponding on-chain transaction. Each on-chain transaction will result in ION fee collection, burn, and distribution. POTX can be used by any entity via its API. The ionomy platform will adopt POTX for verification of all on-chain transactions, contributing significant and regular downward pressure on overall ION supply.
Read the text of the “Deflationary Drivers” proposal for yourself and join the ionomy DIscord for discussion with the team and the community.
Starting September 3rd, IIP 6 voting opens to anyone with an active masternode. Due to a technical problem with the “Proposals” tab in the Qt wallet, we're doing this the old-fashioned way.
Vote by sending in one ION per masternode to either the "Yes" wallet or the "No" wallet. You must send 1 ION from the address that holds your masternode collateral or an addresss that is "one hop" from the collateral address (i.e., your scrape address).
If you support IIP 6, send 1 ION to the "YES" wallet:
If you oppose IIP 6, send 1 ION to the "NO" wallet:
The vote will close within thirty days, or when the majority threshold has been met.
Only one vote per masternode. If a single masternode sends more than one ION, that vote will be discounted.
Tokens! Prepare to fork
Tokens are almost here! The fulfillment of IIP 2 is just around the corner. The new code requires a mandatory hard fork. Upgraded wallets will be released September 3rd. For the easiest upgrade, update your wallets before September 16th when the forking block hits and tokens go live.