Proposal for change of several Carbon network parameters

Proposal.md

Proposals to adjust "slash_fraction_downtime", "voting_period", "unbonding_time"

Current stage: Discussion

Aproximate planned date for proposal: ~27-28 Jan (in case of positive response from community)

Unstaking period from 30 days – to 21 day;

current: "unbonding_time": "2592000s"

proposed: "unbonding_time": "1814400s"

To increase voting period from 24 hours into 48 hours;

current: "voting_period": "86400s"

proposed: "voting_period": "172800s"

To decrease downtime slashing to 0,01 % from 0,1%.

current: "slash_fraction_downtime": "0.001000000000000000"

proposed: "slash_fraction_downtime": "0.000100000000000000"

**The above parameters were analyzed for major cosmos SDK networks (carbon, evmos, cosmoshub, osmosis, akash, celestia, injective, dydx, noble, agoric, archway, axelar, crescent, kava, omniflixhub, juno, kujira)

.**

The following conclusion can be made:

• unstaking period varies from 14 to 21 days for the majority of analyzed networks;
• voting period parameter is higher for the majority of analyzed networks than for Carbon;
• downtime slashing parameter is much lower for the majority of analyzed networks than for Carbon.

Unstaking parameter ("unbonding_time").

Decrease in unstaking period to 21 days may encourage new comers from other cosmos based networks to stake more on Carbon as it more suits expectations based on the majority of Cosmos based networks. At the same time it may result in higher curculating SWTH supply that may effect on the price.

Voting time parameter ("voting_period")

24 hours seams very short period to react on voting proposals. Although it allows Carbon network to progress faster in decisions, it also sometimes makes impossible for a validator to cast the vote on time. 48 hours seems to be a more balanced figure

Downtime slashing parameter ("slash_fraction_downtime")

The parameter (currently 0,1%) looks high compared to the current SWTH inflation rate (~2-3%). There should be somekind of a balance in slashing and rewards. Many validators from the cosmos based networks guarantee downtime slash protection, but the ratio of downtime slashing to inflation makes it absolutely economically unjustified. Moving this parameter down:

• may bring some new validators from other cosmos based networks;
• make SWTH holders less stressfull on staking to new validators and spread stake among existing. Moreover, that parameter is much lower on other cosmos SDK networks with much higher market capitalizations.

For more detailed analysis, pls see the file attached: https://docs.google.com/spreadsheets/d/1wxQJ_r2fu3nrqZ5aOdovKHjy0He7e6dDTA-MiY_PPIY/edit?usp=sharing