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Tellor has been live since August 1st, 2019. Since then, we’ve seen tremendous growth in the interest and robustness of the Tellor community and codebase. Looking back at initial design decisions though, we saw opportunity for improvement and upgraded our system to better enable Tellor’s long term success.

Inflation reduction

The block reward was reduced from 5 to 1 per miner (27.5 TRB minted per block to 5.5 TRB) over the next year. This will reduce the inflation rate from 140% to 17%.

New Inflation Rate

Up until the upgrade, Tellor had an inflation rate of over 140%. This was leading to the supply drastically increasing; rewarding miners and punishing token holders. As we move into a stage of adoption, the team identified that our inflation rate was too high to properly incentivize users and stakeholders besides miners.

Quorum adjustment

Tellor will reduce the quorum to 10 percent.

Currently in the case of an upgrade, Tellor requires a quorum of 20 percent of the total supply to vote to accept the upgrade. Based on token distributions and voting percentages seen recently in other systems, this quorum would likely be too high to reach.

Beyond this

Tellor is not a static system; everything is variable. We envision Tellor moving to a full DAO structure and the community maintaining the flexible approach we currently have to targeting Tellor’s long term goal of system utility. Tellor plans to have a larger upgrade in Q3 2020, and these variables can be tweaked further or even rejected if they are not achieving their expected goals. We’re in this to create a decentralized oracle that works for the space and we will continue to be transparent and flexible as we work towards this goal.