SteemVM Testnet Governance: Proposal 1 Executed Successfully, Inflation Set to 0%

in Steem Dev • last month

In my previous testnet update, I noted that Proposal 1 was on the verge of passing. Today, I am pleased to report that the proposal has officially passed and executed on-chain without any issues.

As a standard reminder, the Steem Virtual Machine (SVM) is strictly in its testnet phase. All bonded STEEM, transactions, and tokenomics discussed here are purely for testing the EVM execution layer and consensus mechanisms. There is no real-world monetary value attached to this chain or its assets.

Governance Execution

You can verify the successful execution of the governance proposal directly on the block explorer here: Proposal 1 on SVM Scan.

The proposal fundamentally altered the tokenomics of the testnet by modifying the x/mint (Mint Module) parameters. The objective was to test how the network behaves in a zero-inflation environment, forcing validator incentives to rely entirely on transaction fees rather than newly minted block rewards.

Parameter Changes: Before and After

Below is the exact state change that occurred on-chain upon the proposal's execution:

ParameterPrevious ValueNew Value (Executed)
Mint Denomasteemasteem
Inflation Rate Change13.00%0.00%
Inflation Max20.00%0.00%
Inflation Min7.00%0.00%
Goal Bonded67.00%67.00%
Blocks per Year6,311,5206,311,520

Impact on the Testnet

By zeroing out the inflation variables, the SVM testnet will no longer mint new asteem tokens to distribute to the active validator set.

This is a critical stress test for the network. It allows us to rigorously monitor the fee market and observe how the EVM gas mechanics handle network load when the supply is strictly fixed. Validators will now be compensated purely from the transaction fees generated by network activity, such as the continuous oracle price feeds we have been tracking.

Network Health Status

The state transition occurred smoothly. The network remains entirely healthy, blocks are being produced at the expected intervals, and the validator set continues to reach consensus without interruption. You can monitor the live health and block production metrics on the SVM Scan Explorer.

Testing on-chain parameter updates and observing the resulting economic shifts is a vital part of preparing the SVM architecture. Thank you to the validators and community members participating in the governance process and helping us stress-test the network.


If you value transparent development, proactive engineering, and robust testnet infrastructure for the STEEM and SVM ecosystems, please consider supporting my witness: blaze.apps

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Hi @blaze.apps thank you for sharing the update. Can you consider making weekly update regarding your developments as everyone doing here. It will be suitable for the community and the readers. Thank You