Why have Delegators rewards gone up?

Since Adaptive Issuance, the amount of delegated tez has gone down, yet the APY for delegated funds has gone up slightly.

Stakers earn twice as much so a natural conclusion might be that inflation has increased under AI.

Is that accurate?

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Yes indeed, the issuance has increased to incentivize staking. You can have a look at https://ai.xtzchad.xyz/ to get graphs about current and projected issuance.

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