The Liquidity Mining proposal estimated a 40% inflation rate due to newly minted BNT tokens based on the 70,000,000 BNT available at that time (Nov 2020).
However, with the DAO voting in so many LM rewards the actual inflation rate (not annualized, which would be a lot higher) from Nov 2020 until now (March 9 2021) is 125%. Total BNT supply has increased from 70 million BNT to 157.6 million BNT in 3-4 months.
I have seen some passing comments in other threads about how this is a known issue. However, at this current rate it does not seem sustainable and will hurt the value of BNT and thus the value of the entire project.
I strongly urge users who are taking part in Governance voting to consider this when voting on LM rewards for new pools. Every new LM pool increases the inflation rate even more and may not justify the extra traffic it brings in the long-term.
Please let me know if this seems like an unreasonable stance. I may be missing some piece of data that rationalizes the inflation rate. I imagine most other “outsiders” seeing a “BNT Total Supply” chart like the chart above will be thinking the same things which will degrade their confidence in BNT.