The Terra inflation schedule for the security budget was set at genesis. The goal of this project is to make sure that the amount being spent is optimized for the amount of value and activity that is locked on the chain.

Here are some questions to be answered in the future:

1. What is the historical and future token inflation for security and how does it compare to other chains in Cosmos?
   1. Create trend ratios (ie. historical security spending / TVL). Include historical data populated based on actual results and token count inflation carried forward. Layer in Alliance assets where applicable.
   2. Comparison with other chains over the same period.
2. Are we over or under spending?
3. What is the appropriate level of inflation to support our TVL?
4. Dynamic inflation vs fixed inflation to match a determined security target.
5. POS security, bonded ratio, Terra’s risk at different bonded ratios.