Our last inflation update was submitted over 14 months ago on March 6, 2025. Since then AKT supply has continued to grow under the current 8% inflation pin and now sits modestly above the originally intended supply schedule from the network whitepaper.
Looking forward, the Akash Core Team thinks it is an appropriate and prudent measure to bring inflation back in line with the originally intended schedule while simultaneously protecting the pace of community-funded development. The proposed changes are:
1. Bring emissions back in line with the original supply schedule. AKT total supply currently sits at ~293m AKT, slightly above where the original whitepaper halving schedule projected at this point in the network's life. Holding inflation at the current 8% max for another 24 months would carry total supply to ~346m AKT — roughly 26.5m AKT above the originally intended trajectory. Reducing inflation max to 4% pulls the 24-month supply path back onto the originally intended curve.
2. Community Pool Tax increase to soften the impact on development funding. A pure inflation cut at the current 50% community pool tax would reduce community pool inflows by the same proportion as the inflation reduction. Raising community pool tax from 50% to 70% partially compensates: net community pool inflows drop by roughly 30% rather than 50%. This keeps the impact on ongoing core engineering, client engineering, AEP support, and other community programs at a manageable level rather than a steep cut.
3. ~26.5m AKT reduction in new emissions over the next 24 months. The proposed inflation reduction is estimated to remove ~26.5m AKT in new token issuance over the next 24 months versus a no-change baseline. Combined with the prior reductions in Proposal 265 and Proposal 283, this continues the network's measured trajectory toward the originally intended supply schedule.
As usual, we will continue to closely monitor market conditions and community feedback going forward.