After the [previous referendum](https://zeitgeist.subsquare.io/democracy/referenda/50) to reduce the inflation of the collation system to 1.5% was rejected, a second attempt is started.
The token holders have signaled that the reduction down to 1.5% is inappropriate, as was evident by the outcome of the referendum as well as discussions on Discord. However, the situation remains the same, the overall inflation has to be reduced. Consequently, this second attempt to reduce the inflation of the collation system uses a less aggressive reduction of 2.5% instead. This leads to a stake APR of approximately 10% and a monthly collator revenue of approximately $205 / month.

- **Problem Statement:** Token holders rejected a previous proposal to reduce inflation to 1.5%, prompting a second attempt to reduce inflation to 2.5%.
- **Significance:** Token holders find the current inflation rate inappropriate, leading to the need for a revised reduction strategy.
- **Proposed Solution:** Reduce the inflation of the collation system to 2.5% to address concerns raised by token holders.
- **Expected Outcomes:** Anticipated stake APR of around 10% and a monthly collator revenue of approximately $205.

#46 Set yearly inflation caused by the collation system to 2.5%

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