In 2024, StaFi introduced a token burn mechanism aimed at the protocol's long-term sustainability. A new plan proposes a phased reduction in fixed inflation to improve network stability.
Inflation Reduction Plan
The proposal outlines an annual 4% reduction in StaFiChain's inflation, beginning in 2025 to reach 6% in 2025, 2% in 2026, and 0% by 2027. This gradual reduction allows the ecosystem to adapt to the LSaaS transition while supporting StaFi's rebranding efforts.
Implementation Strategy and Benefits
Reducing inflation will directly impact StaFiChain validators' rewards, with payouts dropping by approximately 40%. To maintain security, the number of validator slots will be reduced in alignment with the inflation reduction schedule. By 2027, StaFiChain will either be managed by a single foundation or fully shift to an infrastructure model, with FIS migrating to the ERC-20 standard.
Future Outlook and Strategic Direction
Amid market volatility, StaFi focuses on evolving into a sustainable AI-powered Liquid Staking ecosystem, with an emphasis on long-term infrastructure and protocol resilience. Planned efforts include market education, partnership development, and tech upgrades to accelerate the shift to an AI-powered LSaaS platform.
StaFi continues to advance towards building a more sustainable and innovative infrastructure for Liquid Staking, ensuring long-term value for FIS token holders.
