diff --git a/PENDING.md b/PENDING.md
index 7bc7cc683..49ceaf94c 100644
--- a/PENDING.md
+++ b/PENDING.md
@@ -4,6 +4,7 @@ BREAKING CHANGES
 * [baseapp] Msgs are no longer run on CheckTx, removed `ctx.IsCheckTx()`
 * [x/gov] CLI flag changed from `proposalID` to `proposal-id`
 * [x/stake] Fixed the period check for the inflation calculation
+* [x/stake] Inflation doesn't use rationals in calculation (performance boost)
 * [baseapp] NewBaseApp constructor now takes sdk.TxDecoder as argument instead of wire.Codec
 * [x/auth] Default TxDecoder can be found in `x/auth` rather than baseapp
 * \#1606 The following CLI commands have been switched to use `--from`
diff --git a/cmd/gaia/app/app.go b/cmd/gaia/app/app.go
index 82d1123ea..837ce5a10 100644
--- a/cmd/gaia/app/app.go
+++ b/cmd/gaia/app/app.go
@@ -143,8 +143,8 @@ func (app *GaiaApp) BeginBlocker(ctx sdk.Context, req abci.RequestBeginBlock) ab
 // application updates every end block
 // nolint: unparam
 func (app *GaiaApp) EndBlocker(ctx sdk.Context, req abci.RequestEndBlock) abci.ResponseEndBlock {
-	validatorUpdates := stake.EndBlocker(ctx, app.stakeKeeper)
 
+	validatorUpdates := stake.EndBlocker(ctx, app.stakeKeeper)
 	tags, _ := gov.EndBlocker(ctx, app.govKeeper)
 
 	return abci.ResponseEndBlock{
diff --git a/x/slashing/tick.go b/x/slashing/tick.go
index 01984f870..da157ca7a 100644
--- a/x/slashing/tick.go
+++ b/x/slashing/tick.go
@@ -11,6 +11,7 @@ import (
 
 // slashing begin block functionality
 func BeginBlocker(ctx sdk.Context, req abci.RequestBeginBlock, sk Keeper) (tags sdk.Tags) {
+
 	// Tag the height
 	heightBytes := make([]byte, 8)
 	binary.LittleEndian.PutUint64(heightBytes, uint64(req.Header.Height))
diff --git a/x/stake/handler.go b/x/stake/handler.go
index 14fb4f7bf..3cc122e4c 100644
--- a/x/stake/handler.go
+++ b/x/stake/handler.go
@@ -35,18 +35,16 @@ func NewHandler(k keeper.Keeper) sdk.Handler {
 // Called every block, process inflation, update validator set
 func EndBlocker(ctx sdk.Context, k keeper.Keeper) (ValidatorUpdates []abci.Validator) {
 	pool := k.GetPool(ctx)
-	params := k.GetParams(ctx)
 
-	// Process types.Validator Provisions
+	// Process provision inflation
 	blockTime := ctx.BlockHeader().Time
 	if blockTime-pool.InflationLastTime >= 3600 {
+		params := k.GetParams(ctx)
 		pool.InflationLastTime = blockTime
 		pool = pool.ProcessProvisions(params)
+		k.SetPool(ctx, pool)
 	}
 
-	// save the params
-	k.SetPool(ctx, pool)
-
 	// reset the intra-transaction counter
 	k.SetIntraTxCounter(ctx, 0)
 
diff --git a/x/stake/types/inflation_test.go b/x/stake/types/inflation_test.go
index 555408853..0114b1e05 100644
--- a/x/stake/types/inflation_test.go
+++ b/x/stake/types/inflation_test.go
@@ -39,11 +39,11 @@ func TestGetInflation(t *testing.T) {
 
 		// test 7% minimum stop (testing with 100% bonded)
 		{"test 4", sdk.OneRat(), sdk.ZeroRat(), sdk.NewRat(7, 100), sdk.ZeroRat()},
-		{"test 5", sdk.OneRat(), sdk.ZeroRat(), sdk.NewRat(70001, 1000000), sdk.NewRat(-1, 1000000).Round(precision)},
+		{"test 5", sdk.OneRat(), sdk.ZeroRat(), sdk.NewRat(70001, 1000000), sdk.NewRat(-1, 1000000)},
 
 		// test 20% maximum stop (testing with 0% bonded)
 		{"test 6", sdk.ZeroRat(), sdk.ZeroRat(), sdk.NewRat(20, 100), sdk.ZeroRat()},
-		{"test 7", sdk.ZeroRat(), sdk.ZeroRat(), sdk.NewRat(199999, 1000000), sdk.NewRat(1, 1000000).Round(precision)},
+		{"test 7", sdk.ZeroRat(), sdk.ZeroRat(), sdk.NewRat(199999, 1000000), sdk.NewRat(1, 1000000)},
 
 		// perfect balance shouldn't change inflation
 		{"test 8", sdk.NewRat(67), sdk.NewRat(33), sdk.NewRat(15, 100), sdk.ZeroRat()},
@@ -94,8 +94,9 @@ func checkFinalPoolValues(t *testing.T, pool Pool, initialTotalTokens, cumulativ
 // Processes provisions are added to the pool correctly every hour
 // Returns expected Provisions, expected Inflation, and pool, to help with cumulative calculations back in main Tests
 func updateProvisions(t *testing.T, pool Pool, params Params, hr int) (sdk.Rat, sdk.Rat, Pool) {
+
 	expInflation := pool.NextInflation(params)
-	expProvisions := expInflation.Mul(pool.TokenSupply()).Quo(hrsPerYrRat)
+	expProvisions := expInflation.Mul(pool.TokenSupply().Round(precision)).Quo(hrsPerYrRat)
 	startTotalSupply := pool.TokenSupply()
 	pool = pool.ProcessProvisions(params)
 
diff --git a/x/stake/types/pool.go b/x/stake/types/pool.go
index 01dfacada..6ddadf94b 100644
--- a/x/stake/types/pool.go
+++ b/x/stake/types/pool.go
@@ -80,13 +80,15 @@ func (p Pool) bondedTokensToLoose(bondedTokens sdk.Rat) Pool {
 //_______________________________________________________________________
 // Inflation
 
-const precision = 100000000000     // increased to this precision for accuracy
+const precision = 10000            // increased to this precision for accuracy
 var hrsPerYrRat = sdk.NewRat(8766) // as defined by a julian year of 365.25 days
 
 // process provisions for an hour period
 func (p Pool) ProcessProvisions(params Params) Pool {
 	p.Inflation = p.NextInflation(params)
-	provisions := p.Inflation.Mul(p.TokenSupply()).Quo(hrsPerYrRat)
+	provisions := p.Inflation.
+		Mul(p.TokenSupply().Round(precision)).
+		Quo(hrsPerYrRat)
 
 	// TODO add to the fees provisions
 	p.LooseTokens = p.LooseTokens.Add(provisions)
@@ -103,7 +105,10 @@ func (p Pool) NextInflation(params Params) (inflation sdk.Rat) {
 	// 7% and 20%.
 
 	// (1 - bondedRatio/GoalBonded) * InflationRateChange
-	inflationRateChangePerYear := sdk.OneRat().Sub(p.BondedRatio().Quo(params.GoalBonded)).Mul(params.InflationRateChange)
+	inflationRateChangePerYear := sdk.OneRat().
+		Sub(p.BondedRatio().Round(precision).
+			Quo(params.GoalBonded)).
+		Mul(params.InflationRateChange)
 	inflationRateChange := inflationRateChangePerYear.Quo(hrsPerYrRat)
 
 	// increase the new annual inflation for this next cycle