![\"\"](\"https://user-images.githubusercontent.com/55753617/69513159-b38a8000-0efb-11ea-894e-2a89064a0998.png\")
This SIP gradually decreases SNX inflation by 1.25% per week starting on GMT Wednesday, 11 December 2019 00:00:00 - week 40 of the current inflation schedule. There is a separate SIP-24 that proposes an annual inflation rate of 2.5% on week 234 of the inflation schedule. This is the week when the smoothed inflation schedule would first go below 2.5% on an annualized basis.
\nThis SIP is the formal spec successor of deltatiger's Draft SIP Proposal #36. The formalization of specifics (week starting, % decrease per week) reflects the consensus reached during the October 24, 2019 governance call.
\nAfter 6 months of gathering data on current inflation rates and assessing the community's sentiment in regards to future inflation halvening, the community's consensus is that the inflation halvening presents an easily avoidable risk that we can address through a gradually decreased inflation curve starting as soon as possible.
\nStarting on GMT Wednesday, 11 December 2019 00:00:00, SNX inflation decreases by 1.25% per week per this final model, which is based on the origional model proposed in the draft SIP.
\nIf the inflation smoothing and fixed terminal inflation SIPs both get approved, inflation would look like the below graph.\n
![\"\"](\"https://user-images.githubusercontent.com/55753617/69513160-b38a8000-0efb-11ea-9a96-4cfa95eb8ccd.png\")
An abrupt inflation halvening could lead to:
\nStandard test cases for Solidity contract compiling and deploying onto Ethereum testnets before updating the contract on mainnet.
\n[SupplySchedule] https://github.com/Synthetixio/synthetix/blob/v2.16.4/test/contracts/SupplySchedule.js
\n[Synthetix] https://github.com/Synthetixio/synthetix/blob/v2.16.4/test/contracts/Synthetix.js#L2326
\n[RewardsIntegrationTests] https://github.com/Synthetixio/synthetix/blob/v2.16.4/test/contracts/RewardsIntegrationTests.js
\nlastMintEvent is recorded when synthetix.mint() is executed each week (7 days) and to ensure that slippage is removed, the lastMintEvent is set from INFLATION_START_DATE + number of weeks of inflation + MINT_BUFFER.
Relying on the blocktime now when synthetix.mint() is called resulted in the inflation supply not be mintable again until after another 7 days had passed, i.e. if mint was called 1 day late on Friday, instead of a Thursday this slippage would compound. By setting lastMintEvent to the start of the week that was last minted ensures that the next inflation mint would be available earlier.
MINT_BUFFER of 1 DAYS was added to ensure that inflationary supply is minted a day after feePeriod closes.
[SupplySchedule] https://github.com/Synthetixio/synthetix/blob/v2.16.4/contracts/SupplySchedule.sol#L220
\nCopyright and related rights waived via CC0.
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