Harmony economic model is not clearly reflected in the code

[dannyposi]

Summary

Harmony economic model is described here: https://medium.com/harmony-one/harmonys-new-tokenomics-bcdac0db60d7
It says:

- Constant annual reward of 441M ONE regardless of changes in underlying variables such as block time and staking ratio
- Transaction fees offset issuance creating a path to 0 issuance as protocol gains adoption.

As I understand, the number of tokens issuanced will decrease to zero as the transaction volume increases. But i cannot find this logic (decrease tokens issuanced to zero) in the code.

Current Design

Currently the rewards always calculated by defaultReward*votePercent (defaultReward is 7 ONE and votePercent is hardcoded for corresponding node's instance). (See logic:

harmony/internal/chain/reward.go

Line 620 in 1445223

due := defaultReward.Mul(

)

Problems

Logic not reflected in the code.

Proposal

None

[sophoah]

the token economics will have to be updated once the R1 proposal is implemented. Right now, the logic is in the transaction fees that are currently burnt and not redistributed to any parties. However that will change in the future. cc @rlan35