# Inflation Adjustment Proposal
AI summary
This proposal seeks to reduce the annual inflation rate of the OP token from the default 2% to 0% for the upcoming second year. This means no new OP tokens will be minted due to inflation during that period.
If passed, the supply of OP tokens will not increase due to inflation in Year 2, which could potentially benefit existing token holders by preventing dilution. There are no clear losers, but the impact on token price is uncertain.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Inflation Adjustment Proposal
Inflation of the OP token is set to 2% per year by default. This inflation parameter can be adjusted by governance. This proposal would reduce inflation in Year 2 to 0%.
This Season 4 proposal is eligible for voting in Special Voting Cycle #12b: https://gov.optimism.io/t/draft-inflation-adjustment-proposal-to-0/5936.