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Guard Mechanism

The Guard is a safety mechanism that gates the transition to 8% inflation. This guide explains how it works and why it exists.

What is the Guard?​

The Guard is a threshold requirement that must be met before the network transitions from 0.9% to 8% inflation:

8% Inflation Activation = switch_8pct_height reached + Guard threshold met

Even if the chain reaches switch_8pct_height, inflation stays at 0.9% until the Guard condition is satisfied.

Guard Threshold​

ParameterValue
Required total burn5,000,000 LYTH
Measured fromValidator burn deposits

The Guard is cleared when cumulative validator burn deposits reach 5,000,000 LYTH.

Why a Guard?​

The Guard ensures minimum network commitment before enabling high inflation:

  1. Validator Commitment: At least 50 validators must have registered (50 × 100k = 5M LYTH burned)
  2. Economic Security: Ensures significant stake at risk before high rewards
  3. Spam Prevention: Prevents premature inflation with few validators
  4. Alignment: High inflation only activates when sufficient permanent commitment exists

How It Works​

Before Guard is Cleared​

Block rewards = 0.9% annual inflation
Guard status = NOT_CLEARED
Required burns = 5,000,000 LYTH
Current burns = <current_total>

After Guard is Cleared​

Block rewards = 8% annual inflation (if past switch_8pct_height)
Guard status = CLEARED

Once cleared, the Guard cannot be "un-cleared" - it's a one-way transition.

Checking Guard Status​

Via CLI​

monod query guard status

Example output:

{
  "cleared": false,
  "current_burn_total": "3500000000000000000000000000",
  "threshold": "5000000000000000000000000000",
  "remaining": "1500000000000000000000000000"
}

Via RPC​

curl -s localhost:1317/monolythium/guard/v1/status | jq

Guard Scenarios​

Scenario 1: Guard Cleared Before switch_8pct_height​

Timeline:
├── Genesis (0% inflation)
├── rewards_start_height (0.9% inflation begins)
├── Guard threshold met (nothing changes yet)
├── switch_8pct_height (8% inflation activates immediately)

Scenario 2: Guard Cleared After switch_8pct_height​

Timeline:
├── Genesis (0% inflation)
├── rewards_start_height (0.9% inflation begins)
├── switch_8pct_height (stays at 0.9%, Guard not met)
├── Guard threshold met (8% inflation activates)

Scenario 3: Guard Never Cleared​

Timeline:
├── Genesis (0% inflation)
├── rewards_start_height (0.9% inflation begins)
├── switch_8pct_height (stays at 0.9%)
├── ... (continues at 0.9% indefinitely)

!!! note "Unlikely Scenario" Scenario 3 is unlikely since validator incentives encourage registration, and 50 validators burning 100k each meets the threshold.

Validator Burn Tracking​

Each validator registration includes a 100,000 LYTH burn. The Guard module tracks cumulative burns:

Validator 1 registers: Total = 100,000 LYTH
Validator 2 registers: Total = 200,000 LYTH
...
Validator 50 registers: Total = 5,000,000 LYTH → Guard CLEARED

Only validator burn deposits count toward the Guard threshold, not:

  • Voluntary MsgBurn transactions
  • Fee burns (90% of fees)
  • Other token burns

Impact on Stakers​

Guard StateInflationAnnual Rewards (approx)
Not cleared0.9%~7M LYTH
Cleared (past switch height)8%~62M LYTH

Stakers benefit from Guard being cleared - it unlocks significantly higher rewards.

Impact on Validators​

Validators are directly responsible for clearing the Guard:

  • Each validator registration contributes 100,000 LYTH
  • 50 validators = Guard cleared
  • Validators have incentive to encourage others to register

Governance and the Guard​

The Guard threshold is set at genesis and cannot be modified without a chain upgrade:

  • No governance proposal can change the threshold
  • The mechanism is deterministic and predictable
  • Ensures transparent economic rules

Technical Details​

Module Account​

The Guard module has its own account that tracks validator burns:

monod query auth module-account guard

State Structure​

type GuardState struct {
    Cleared          bool
    TotalBurnDeposit sdk.Coins
    Threshold        sdk.Coins
    ClearedHeight    int64  // Height when cleared, 0 if not
}

Events​

When the Guard is cleared, an event is emitted:

{
  "type": "guard_cleared",
  "attributes": [
    {"key": "cleared_height", "value": "1234567"},
    {"key": "total_burn", "value": "5000000000000..."}
  ]
}

FAQ​

Can I clear the Guard faster by burning more?

No. Only the mandatory 100,000 LYTH validator burn deposits count. Voluntary burns don't contribute.

What if validators unregister?

Burns are permanent. Even if a validator unregisters, their burn contribution remains counted.

Is there a time limit on the Guard?

No. The Guard has no time limit - it clears when the threshold is met, regardless of when.

Can governance lower the threshold?

Not without a chain upgrade. The threshold is hardcoded, not a governance parameter.

What's the exact threshold in alyth?

5,000,000 LYTH = 5,000,000,000,000,000,000,000,000 alyth (5 × 10²⁴ alyth)