FRZ Inflation Schedule

To ensure multi-century sustainability of the protocol, FRZ inflates and new supply is given to those who burn frETH.

In the first year of True Freeze, FRZ inflates at 10%. Each subsequent year, the inflation rate falls by 1% until it plateaus at 2% annual inflation. This creates a 10-year Accumulation Phase where those who earn and stake FRZ in the first 10 years have a disproportionate flow of revenue for the protocol for several decades following.

The inflation rate falls from 10% in the first year to 2% in perpetuity.

This new inflationary FRZ dilutes those who stake FRZ without using the protocol to reward those using True Freeze.

Each year, the FRZ contract must have its mint function called to replenish the frETH burn contract with new FRZ to reward. Anyone may call this function. Calling this function costs gas and does not give any rewards. We make the assumption that at least 1 person who has burned frETH will willingly cover this cost once per year to ensure continued flow of FRZ.

After 100 years the total supply of FRZ crosses 1 Billion, with an annual inflation of 2%.