Public Goods Funding
Namada funds public goods by regularly minting NAM tokens into an on-chain PGF account and allocating certain amounts for certain entities.
The inflation rate is a constant parameter pgf_inflation_rate that is mutable by governance.
The entities that receive such funding are approved either via governance or by a multisignature account known as a "public goods steward". Stewards must also be elected with a governance proposal and are meant to be trusted authorities for responsibly identifying good candidates to receive public goods funding. As such, a steward may submit a funding proposal that does not need to receive any yay votes to be passed, though a community veto mechanism does exist.
To incentivize high-impact authorities to seek stewardship, a steward also receives inflationary NAM tokens at a rate dictated by the constant parameter that is chosen by governance.
See the specs about the public goods funding here (opens in a new tab) for more details.
This documentation covers: