From 3f696de9e0edac9a4d97006fbde0deac9818d757 Mon Sep 17 00:00:00 2001
From: Kevin Yang <5478483+k-yang@users.noreply.github.com>
Date: Fri, 15 Dec 2023 14:16:48 -0500
Subject: [PATCH] refactor(inflation): make inflation disabled by default
 (#1712)

* refactor(inflation): make inflation disabled by default

* chore: update changelog
---
 CHANGELOG.md                                    |  7 ++-----
 x/inflation/keeper/hooks_test.go                |  4 ++++
 x/inflation/keeper/inflation_test.go            | 12 ++++++++++--
 x/inflation/types/inflation_calculation_test.go |  1 +
 x/inflation/types/params.go                     |  2 +-
 5 files changed, 18 insertions(+), 8 deletions(-)

diff --git a/CHANGELOG.md b/CHANGELOG.md
index a3c0ccdc6..20e356824 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -40,7 +40,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## Unreleased
 
-## [v1.1.0](https://github.com/NibiruChain/nibiru/releases/tag/v1.1.0) - 2023-12-14
+## [v1.1.0](https://github.com/NibiruChain/nibiru/releases/tag/v1.1.0) - 2023-12-15
 
 * [[Release Link](https://github.com/NibiruChain/nibiru/releases/tag/v1.1.0)]
 * [[Commits](https://github.com/NibiruChain/nibiru/commits/v1.1.0)]
@@ -58,10 +58,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Improvements
 
 * [#1695](https://github.com/NibiruChain/nibiru/pull/1695) - feat(inflation): add events for inflation distribution
-
-### State Machine Breaking
-
-* [#1682](https://github.com/NibiruChain/nibiru/pull/1682) - feat: add upgrade handler for v1.1.0
+* [#1712](https://github.com/NibiruChain/nibiru/pull/1712) - refactor(inflation): turn inflation off by default
 
 ## [v1.0.0](https://github.com/NibiruChain/nibiru/releases/tag/v1.0.0)
 
diff --git a/x/inflation/keeper/hooks_test.go b/x/inflation/keeper/hooks_test.go
index a64f0a048..0ce0391fa 100644
--- a/x/inflation/keeper/hooks_test.go
+++ b/x/inflation/keeper/hooks_test.go
@@ -16,6 +16,10 @@ import (
 func TestEpochIdentifierAfterEpochEnd(t *testing.T) {
 	nibiruApp, ctx := testapp.NewNibiruTestAppAndContext()
 
+	params := nibiruApp.InflationKeeper.GetParams(ctx)
+	params.InflationEnabled = true
+	nibiruApp.InflationKeeper.SetParams(ctx, params)
+
 	feePoolOld := nibiruApp.DistrKeeper.GetFeePool(ctx)
 	nibiruApp.EpochsKeeper.AfterEpochEnd(ctx, epochstypes.DayEpochID, 1)
 	feePoolNew := nibiruApp.DistrKeeper.GetFeePool(ctx)
diff --git a/x/inflation/keeper/inflation_test.go b/x/inflation/keeper/inflation_test.go
index 5b157d641..dbca22f15 100644
--- a/x/inflation/keeper/inflation_test.go
+++ b/x/inflation/keeper/inflation_test.go
@@ -149,13 +149,21 @@ func TestGetCirculatingSupplyAndInflationRate(t *testing.T) {
 		{
 			"high supply",
 			sdk.TokensFromConsensusPower(800_000_000, sdk.DefaultPowerReduction),
-			func(nibiruApp *app.NibiruApp, ctx sdk.Context) {},
+			func(nibiruApp *app.NibiruApp, ctx sdk.Context) {
+				params := nibiruApp.InflationKeeper.GetParams(ctx)
+				params.InflationEnabled = true
+				nibiruApp.InflationKeeper.SetParams(ctx, params)
+			},
 			sdk.MustNewDecFromStr("27.095518287362700000"),
 		},
 		{
 			"low supply",
 			sdk.TokensFromConsensusPower(400_000_000, sdk.DefaultPowerReduction),
-			func(nibiruApp *app.NibiruApp, ctx sdk.Context) {},
+			func(nibiruApp *app.NibiruApp, ctx sdk.Context) {
+				params := nibiruApp.InflationKeeper.GetParams(ctx)
+				params.InflationEnabled = true
+				nibiruApp.InflationKeeper.SetParams(ctx, params)
+			},
 			sdk.MustNewDecFromStr("54.191036574725400000"),
 		},
 	}
diff --git a/x/inflation/types/inflation_calculation_test.go b/x/inflation/types/inflation_calculation_test.go
index a63701e87..8d76e6935 100644
--- a/x/inflation/types/inflation_calculation_test.go
+++ b/x/inflation/types/inflation_calculation_test.go
@@ -24,6 +24,7 @@ var ExpectedTotalInflation = sdk.NewDec(810_600_000_000_000)
 
 func TestCalculateEpochMintProvision(t *testing.T) {
 	params := DefaultParams()
+	params.InflationEnabled = true
 
 	epochId := uint64(0)
 	totalInflation := sdk.ZeroDec()
diff --git a/x/inflation/types/params.go b/x/inflation/types/params.go
index 89d684b1b..500d672b4 100644
--- a/x/inflation/types/params.go
+++ b/x/inflation/types/params.go
@@ -18,7 +18,7 @@ var (
 )
 
 var (
-	DefaultInflation         = true
+	DefaultInflation         = false
 	DefaultPolynomialFactors = []sdk.Dec{
 		sdk.MustNewDecFromStr("-0.00014903"),
 		sdk.MustNewDecFromStr("0.07527647"),