[Resubmission of Ref 589] Kusama Inflation Parameters for Asset Hub Migration

Since we identified an error in Ref 589 (using perbill instead of perquintill for the inflation parameter, which effectively set inflation near zero), this referendum is a resubmission with the correct parameters. It pre-commits the post-Asset Hub staking inflation settings: maintaining 10% annual inflation with a 75% ideal stake, and disabling parachain slot adjustments by setting UseAuctionSlots = false.

Moreover, this reduces the maximum number of validator candidates from 4000 to 2500. This is because with the migration of the staking system to AH, the maximum number of validators that the AssetHub can handle cannot be as large of the relay chain, due to PoV constraints. Should the 2500 validator candidacy slots be filled, then validators can compete for the top 2500 slots via chill_other extrinsic, which allows anyone to forcefully chill a validator who has less than minValidatorBond of self-stake. minValidatorBond needs to be set by governance.

Why a vote if numbers don’t change?

Because the execution path changes after the Asset Hub migration. The auctions-dependent branch becomes irrelevant; without an explicit update, the chain could fall back to behavior not explicitly approved for post-AH. This proposal:

Disables the auctions path by setting (UseAuctionSlots = false)
Locks in the same headline numbers (10%, 75%) under the right path for AH.
Voting now blesses the exact post-AH settings (10%, 75%), reduces ambiguity for operators/stakers, and records intent on-chain (remark).
Reduces ambiguity by explicitly recording intent through this referendum (approval of this vote itself signals the community’s intent: post-AH, no immediate change, and revisit after migration).

Why 10% and 75% now?

We’re prioritising stability through the migration: keeping incentives familiar for validators/nominators and maintaining predictable Treasury dynamics. Changing rates today adds unnecessary risk; we’ll reassess after AH with live data (including options like alternative reward curves or gradual issuance schedules, or decreased inflation …. etc)

What exactly changes on the chain?

A batched Root call that:

sets Inflation::UseAuctionSlots = false
sets Inflation::MaxInflation = perquintill (100_000_000_000_000_000) (10%) & IdealStake remains 75% as is.
sets Staking::MaxValidatorCount = 2500.

Edited

Here's a simple summary:

This fixes a mistake in an earlier vote about money rules
It keeps the same yearly reward rate (10%) and ideal staking amount (75%)
It stops using old auction rules that won't work later
It reduces the maximum number of validators from 4000 to 2500
It makes sure the system works properly after a big upgrade
People are voting to approve these exact settings
The changes help keep things stable during the upgrade

Source

Since we identified an error in Ref 589 (using perbill instead of perquintill for the inflation parameter, which effectively set inflation near zero), this referendum is a resubmission with the correct parameters. It pre-commits the post-Asset Hub staking inflation settings: maintaining 10% annual inflation with a 75% ideal stake, and disabling parachain slot adjustments by setting UseAuctionSlots = false.

Moreover, this reduces the maximum number of validator candidates from 4000 to 2500. This is because with the migration of the staking system to AH, the maximum number of validators that the AssetHub can handle cannot be as large of the relay chain, due to PoV constraints. Should the 2500 validator candidacy slots be filled, then validators can compete for the top 2500 slots via chill_other extrinsic, which allows anyone to forcefully chill a validator who has less than minValidatorBond of self-stake. minValidatorBond needs to be set by governance.

Why a vote if numbers don’t change?

Because the execution path changes after the Asset Hub migration. The auctions-dependent branch becomes irrelevant; without an explicit update, the chain could fall back to behavior not explicitly approved for post-AH. This proposal:

Disables the auctions path by setting (UseAuctionSlots = false)
Locks in the same headline numbers (10%, 75%) under the right path for AH.
Voting now blesses the exact post-AH settings (10%, 75%), reduces ambiguity for operators/stakers, and records intent on-chain (remark).
Reduces ambiguity by explicitly recording intent through this referendum (approval of this vote itself signals the community’s intent: post-AH, no immediate change, and revisit after migration).

Why 10% and 75% now?

We’re prioritising stability through the migration: keeping incentives familiar for validators/nominators and maintaining predictable Treasury dynamics. Changing rates today adds unnecessary risk; we’ll reassess after AH with live data (including options like alternative reward curves or gradual issuance schedules, or decreased inflation …. etc)

What exactly changes on the chain?

A batched Root call that:

sets Inflation::UseAuctionSlots = false
sets Inflation::MaxInflation = perquintill (100_000_000_000_000_000) (10%) & IdealStake remains 75% as is.
sets Staking::MaxValidatorCount = 2500.

Edited