Update Ideal Staking rate info

docs/learn/learn-DOT-inflation.md

@@ -0,0 +1,101 @@
+---
+id: learn-DOT-inflation
+title: DOT Inflation
+sidebar_label: DOT Inflation
+description: Tokenomics of Polkadot's Native Token DOT.
+keywords: [token, DOT, inflation]
+slug: ../learn-DOT-inflation
+---
+
+import RPC from "./../../components/RPC-Connection";
+
+{{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} is an inflationary token. There is no maximum
+number of {{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }}. On the
+{{ polkadot: Polkadot :polkadot }}{{ kusama: Kusama :kusama }} network, inflation is
+{{ polkadot: [set to be 10% annually](https://github.com/paritytech/polkadot/blob/756ccc35e93d1a78e3c71a0e67ae4da5f1d09f69/runtime/polkadot/src/lib.rs#L576), :polkadot }}
+{{ kusama: [set to be 10% annually](https://github.com/paritytech/polkadot/blob/756ccc35e93d1a78e3c71a0e67ae4da5f1d09f69/runtime/kusama/src/lib.rs#L535), :kusama }}
+with validator rewards being a function of the amount staked and the remainder going to the
+treasury.
+
+:::info
+
+DOT went through [redenomination](./learn-redenomination.md) in 2020 that saw the DOT token supply
+increase by 100 times.
+
+The current token supply on {{ polkadot: Polkadot :polkadot }}{{ kusama: Kusama :kusama }} is
+{{ polkadot: <RPC network="polkadot" path="query.balances.totalIssuance" defaultValue={12230666300429914781} filter="humanReadable"/> (Over 1.2 Billion DOT). :polkadot }}
+{{ kusama: <RPC network="kusama" path="query.balances.totalIssuance" defaultValue={12619256191792480093} filter="humanReadable"/> (Over 12 Million KSM). :kusama }}
+
+:::
+
+According to the inflation model, this would suggest that if you do not use your
+{{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} for staking, your tokens currently dilute
+over time. **Token inflation is not a forever fixed value, and inflation can be set lower in the
+future through [on-chain governance](./learn-polkadot-opengov.md).**
+
+It is important to understand that inflation is used to incentivize network participants and to grow
+the network, especially in the early phases. Ending inflation too soon could limit growth while
+ending inflation too late (after the ecosystem has reached a mature stage) could dilute the value of
+your currency with no further growth for the ecosystem.
+{{ polkadot: Polkadot :polkadot }}{{ kusama: Kusama :kusama }} is a young network, and it is
+currently in a growing stage and has yet to reach maturity.
+
+## Inflation Model
+
+The chart below shows the inflation model of the network. Depending on the number of staked tokens,
+the distribution of the inflation to validators and nominators versus the treasury will change
+dynamically to provide incentives to participate (or not participate) in staking.
+
+There is a [dynamic _ideal staking rate_](#ideal-staking-rate) (in the figure set to 0.5 or 50%)
+that the network tries to maintain. The goal is to have the _system staking rate_ meet the _ideal
+staking rate_. The system staking rate would be the total amount staked over the total token supply,
+where the total amount staked is the stake of all validators and nominators on the network. The
+ideal staking rate accounts for having sufficient backing of {{ polkadot: DOT :polkadot }}
+{{ kusama: KSM :kusama }} to prevent the possible compromise of security while keeping the native
+token liquid.
+
+![staking](../assets/NPoS/staking-rate-with-parachains.png)
+
+<p style={{textAlign:"center"}}>Source: <a href="https://w3f-research.readthedocs.io/en/latest/polkadot/overview/2-token-economics.html">Research - Web3 Foundation</a></p>
+
+- **x-axis**: Proportion of {{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} staked
+- **y-axis**: Inflation, annualized percentage
+- **Blue line**: Annual inflation rate of NPoS, i.e. total amount of tokens minted to pay validators
+  and nominators.
+- **Green line**: Annual rewards rate for stakers. For instance, 0.2 corresponds to 20% of annual
+  returns on the staked tokens. You can determine the current annual staking rewards rate by looking
+  at the top bar of the staking overview on
+  [Polkadot-JS UI](https://polkadot.js.org/apps/#/staking).
+
+Assuming that the ideal staking rate is 50%, all of the inflation would go to the validators and
+nominators if 50% of all {{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} are staked. Any
+deviation from the 50% - positive or negative - sends the proportional remainder to the treasury.
+Deviation from the ideal staking rate are referred to as _staking inefficiencies_. Thus, the
+treasury does not currently receive a substantial inflow of funds at the ideal staking rate. See
+[this page](./learn-polkadot-opengov-treasury.md) for more information about treasury inflow
+sources.
+
+For those who are interested in knowing more about the design of the inflation model for the
+network, please see [here](https://research.web3.foundation/Polkadot/overview/token-economics).
+
+## Ideal Staking Rate
+
+The ideal staking rate can vary between 45% to 75% based on the number of parachains that acquired a
+lease through an auction (this excludes the System parachains), based on the implementation
+[here](https://github.com/paritytech/polkadot-sdk/blob/cd901764a52edc04a6d22bea3a526def593ab2a7/polkadot/runtime/common/src/impls.rs#L80).
+
+Briefly, the ideal staking rate can be calculated as follows:
+
+`0.75 - auction_proportion`
+
+where `auction_proportion` is obtained by computing `min(auctioned_slots, 60) / 200`. The
+`auctioned_slots` are all the auctioned slots without the slots for system parachains.
+
+Assuming there are 48 filled slots, of which three are dedicated to system parachains (Asset Hub,
+Bridge Hub and Collectives), there are 45 auctioned slots. The `auction_proportion` is thus
+`45 / 200 = 0.225`. The ideal staking rate is `0.75 - 0.225 = 0.525`.
+
+If the amount of tokens staked goes below 52.5%, then staking rewards for nominators increase,
+incentivizing them to stake more tokens on the network. On the contrary, staking rewards drop if
+staked tokens exceed the ideal staking rate. This results from the change in the percentage of
+staking rewards that go to the Treasury.

docs/learn/learn-staking-advanced.md

@@ -465,91 +465,6 @@ about how to claim rewards using the Polkadot-JS UI.
 4. Staking operations at the end of an era are closed to allow the off-chain validator election to
    take place. See [Off-chain Phragmén](learn-phragmen.md#off-chain-phragmen) for more information.
 
-## Inflation
-
-{{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} is an inflationary token. In fact, there is
-no maximum number of {{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }}. On
-{{ polkadot: Polkadot :polkadot }}{{ kusama: Kusama :kusama }} network, inflation is
-{{ polkadot: [set to be 10% annually](https://github.com/paritytech/polkadot/blob/756ccc35e93d1a78e3c71a0e67ae4da5f1d09f69/runtime/polkadot/src/lib.rs#L576), :polkadot }}
-{{ kusama: [set to be 10% annually](https://github.com/paritytech/polkadot/blob/756ccc35e93d1a78e3c71a0e67ae4da5f1d09f69/runtime/kusama/src/lib.rs#L535), :kusama }}
-with validator rewards being a function of the amount staked and the remainder going to the
-treasury.
-
-:::info
-
-DOT went through [redenomination](./learn-redenomination.md) in 2020 that saw the DOT token supply
-increase by 100 times.
-
-The current token supply on {{ polkadot: Polkadot :polkadot }}{{ kusama: Kusama :kusama }} is
-{{ polkadot: <RPC network="polkadot" path="query.balances.totalIssuance" defaultValue={12230666300429914781} filter="humanReadable"/> (Over 1.2 Billion DOT). :polkadot }}
-{{ kusama: <RPC network="kusama" path="query.balances.totalIssuance" defaultValue={12619256191792480093} filter="humanReadable"/> (Over 12 Million KSM). :kusama }}
-
-:::
-
-There is an _ideal staking rate_ that the network tries to maintain. The goal is to have the _system
-staking rate_ meet the _ideal staking rate_. The system staking rate would be the total amount
-staked over the total token supply, where the total amount staked is the stake of all validators and
-nominators on the network. The ideal staking rate accounts for having sufficient backing of
-{{ polkadot: DOT :polkadot }} {{ kusama: KSM :kusama }} to prevent the possible compromise of
-security while keeping the native token liquid.
-{{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} is inflated according to the system staking
-rate of the entire network.
-
-:::info
-
-According to the inflation model, this would suggest that if you do not use your
-{{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} for staking, your tokens dilute over time.
-
-:::
-
-The ideal staking rate on {{ polkadot: Polkadot :polkadot }}{{ kusama: Kusama :kusama }} also varies
-with the number of parachains (50% is the current estimation of all
-{{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} that should be staked, per parachain slot).
-
-:::info The ideal staking rate varies based on the number of parachains
-
-The current staking rate on
-{{ polkadot: Polkadot still assumes the absence of parachains, with the suggested ideal staking rate of 75%. :polkadot }}
-{{ polkadot: You can track the progress on the issue to adjust it [here](https://github.com/paritytech/polkadot/pull/5872). :polkadot }}
-{{ kusama: Kusama has an ideal staking rate of approximately 50% with 50 parachains. :kusama }}
-{{ kusama: When the number of slots reaches 60, the ideal staking rate is 45%. [Here](https://github.com/paritytech/polkadot/blob/master/runtime/kusama/src/lib.rs#L535) is the code for reference. :kusama }}
-This code assumes that the number of slots auctioned correspond to the number of parachains on the
-relaychain, which may not be true as new slots can be occupied by old parachains that are renewing
-their lease. You can also track the progress on resolving this specific issue
-[here](https://github.com/paritytech/polkadot/pull/5872).
-
-:::
-
-If the amount of tokens staked goes below the ideal rate, then staking rewards for nominators go up,
-incentivizing them to stake more tokens on the network. On the contrary, if it goes above the ideal
-rate, staking rewards drop. This is a result of the change in the percentage of staking rewards that
-go to the Treasury.
-
-![staking](../assets/NPoS/staking-rate-with-parachains.png)
-
-<p style={{textAlign:"center"}}>Source: <a href="https://w3f-research.readthedocs.io/en/latest/polkadot/overview/2-token-economics.html">Research - Web3 Foundation</a></p>
-
-- **x-axis**: Proportion of {{ polkadot: DOT :polkadot }}{{ kusama: KSM :kusama }} staked
-- **y-axis**: Inflation, annualized percentage
-- **Blue line**: Annual inflation rate of NPoS, i.e. total amount of tokens minted to pay validators
-  and nominators.
-- **Green line**: Annual rewards rate for stakers. For instance, 0.2 corresponds to 20% of annual
-  returns on the staked tokens.
-
-You can determine the staking rewards by looking at the top bar of the staking overview on
-[Polkadot-JS UI](https://polkadot.js.org/apps/#/staking).
-
-The above chart shows the inflation model of the network. Depending on the staking participation,
-the distribution of the inflation to validators/nominators versus the treasury will change
-dynamically to provide incentives to participate (or not participate) in staking.
-
-For instance, assuming that the ideal staking rate is 50%, all of the inflation would go to the
-validators/nominators if 50% of all KSM / DOT are staked. Any deviation from the 50% - positive or
-negative - sends the proportional remainder to the treasury and effectively reduces staking rewards.
-
-For those who are interested in knowing more about the design of the inflation model for the
-network, please see [here](https://research.web3.foundation/Polkadot/overview/token-economics).
-
 ## Staking Miner
 
 :::caution

polkadot-wiki/sidebars.js

@@ -182,6 +182,7 @@ module.exports = {
               items: [
                 "learn/learn-assets",
                 "learn/learn-DOT",
+                "learn/learn-DOT-inflation",
                 "learn/learn-teleport",
               ],
             },