#6 Software Upgrade Proposal for improving the token economics and enabling the ecosystem airdrop

## Summary\nThis Software Upgrade Proposal includes the following changes which were discussed in the earlier signaling proposals.\n- Inflation is set to 15% and decrement of 1% every year\n- Reduce the existing “Ecosystem Rewards” allocation from 30% to 15%\n- Introduce a new “Platform Incentives” pool, funded by 15% of inflation-based rewards\n- Enable ecosystem airdrop\n\n## Proposal Details\nThis Software Upgrade Proposal is for introducing the changes as discussed in the earlier signaling proposals.\n\n### Reforming the Inflation Policy for Long-Term Sustainability\nThis fundamentally revises the inflation model of Gitopia’s native token, . It presents a shift from the current maximum inflation rate of 35%, designed to halve every 2 years over 11 years, to a more sustainable framework. The new model advocates for an initial rate of 15%, with a planned annual decrement of 1%, eventually dwindling to zero over a 16-year period, while preserving the hard cap of 1,711,136,479 tokens.\n\n[Signalling proposal link](https://wallet.keplr.app/chains/gitopia/proposals/4)\n\n### Restructuring Ecosystem Rewards for Platform Incentives\nReallocating a portion of the current 30% ecosystem rewards generated from inflation to a separate fund called “Platform Incentives.” The aim is to dedicate 15% of the inflation-based rewards to incentivize active and meaningful participation in the Gitopia platform, particularly focusing on open-source contribution and collaboration.\n\n[Signaling proposal link](https://wallet.keplr.app/chains/gitopia/proposals/5)\n\n### Enable Ecosystem Airdrop\nThis will enable ecosystem airdrop for delegators in Cosmos, Osmosis and Akash network.\n\n## Release binaries\n[gitopiad v3.0.0](https://gitopia.com/Gitopia/gitopia/releases/tag/v3.0.0)\n\n## Upgrade time\nThe upgrade height is 6,072,000, which is approximately around Sept 15th, UTC 16:30.\n\n## Governance Voting Options\nBelow are the choices available for voting on this proposal and their corresponding implications:\n- Vote YES: By voting YES, you express your support for the software upgrade.\n- Vote NO: A NO vote signifies your disagreement with the proposed software upgrade.\n- Vote NO WITH VETO: Voting NO WITH VETO indicates that you view the proposal as irrelevant to Gitopia, a potential infringement on minority interests, or as a proposal that either violates or encourages the violation of the rules of engagement as defined by Gitopia. If votes cast under this option exceed a third of the total votes, the proposal will be rejected and all deposits will be burned.\n- Vote ABSTAIN: By voting ABSTAIN, you are participating in achieving quorum while formally choosing not to express an opinion in favor or against the proposal.