diff --git a/PENDING.md b/PENDING.md
index e82bc08818d0..78077de88e17 100644
--- a/PENDING.md
+++ b/PENDING.md
@@ -63,5 +63,6 @@ BUG FIXES
 * Gaia
 
 * SDK
+  * \#3646 `x/mint` now uses total token supply instead of total bonded tokens to calculate inflation
 
 * Tendermint
diff --git a/types/stake.go b/types/staking.go
similarity index 97%
rename from types/stake.go
rename to types/staking.go
index 8169307c9ef2..d9143fa4ed1b 100644
--- a/types/stake.go
+++ b/types/staking.go
@@ -100,7 +100,8 @@ type ValidatorSet interface {
 
 	Validator(Context, ValAddress) Validator            // get a particular validator by operator address
 	ValidatorByConsAddr(Context, ConsAddress) Validator // get a particular validator by consensus address
-	TotalPower(Context) Int                             // total power of the validator set
+	TotalBondedTokens(Context) Int                      // total bonded tokens within the validator set
+	TotalTokens(Context) Int                            // total token supply
 
 	// slash the validator and delegators of the validator, specifying offence height, offence power, and slash fraction
 	Slash(Context, ConsAddress, int64, int64, Dec)
diff --git a/x/distribution/types/expected_keepers.go b/x/distribution/types/expected_keepers.go
index 51b992b3bb1e..eef0daa547b2 100644
--- a/x/distribution/types/expected_keepers.go
+++ b/x/distribution/types/expected_keepers.go
@@ -9,7 +9,6 @@ type StakingKeeper interface {
 	Delegation(ctx sdk.Context, delAddr sdk.AccAddress, valAddr sdk.ValAddress) sdk.Delegation
 	Validator(ctx sdk.Context, valAddr sdk.ValAddress) sdk.Validator
 	ValidatorByConsAddr(ctx sdk.Context, consAddr sdk.ConsAddress) sdk.Validator
-	TotalPower(ctx sdk.Context) sdk.Int
 	GetLastTotalPower(ctx sdk.Context) sdk.Int
 	GetLastValidatorPower(ctx sdk.Context, valAddr sdk.ValAddress) int64
 
diff --git a/x/gov/tally.go b/x/gov/tally.go
index cc7df2412ffa..1bf28e493fbe 100644
--- a/x/gov/tally.go
+++ b/x/gov/tally.go
@@ -103,11 +103,11 @@ func tally(ctx sdk.Context, keeper Keeper, proposal Proposal) (passes bool, tall
 
 	// TODO: Upgrade the spec to cover all of these cases & remove pseudocode.
 	// If there is no staked coins, the proposal fails
-	if keeper.vs.TotalPower(ctx).IsZero() {
+	if keeper.vs.TotalBondedTokens(ctx).IsZero() {
 		return false, tallyResults
 	}
 	// If there is not enough quorum of votes, the proposal fails
-	percentVoting := totalVotingPower.Quo(sdk.NewDecFromInt(keeper.vs.TotalPower(ctx)))
+	percentVoting := totalVotingPower.Quo(sdk.NewDecFromInt(keeper.vs.TotalBondedTokens(ctx)))
 	if percentVoting.LT(tallyParams.Quorum) {
 		return false, tallyResults
 	}
diff --git a/x/mint/abci_app.go b/x/mint/abci_app.go
index 1758a5c170d3..5016a464d18a 100644
--- a/x/mint/abci_app.go
+++ b/x/mint/abci_app.go
@@ -12,7 +12,7 @@ func BeginBlocker(ctx sdk.Context, k Keeper) {
 	params := k.GetParams(ctx)
 
 	// recalculate inflation rate
-	totalSupply := k.sk.TotalPower(ctx)
+	totalSupply := k.sk.TotalTokens(ctx)
 	bondedRatio := k.sk.BondedRatio(ctx)
 	minter.Inflation = minter.NextInflationRate(params, bondedRatio)
 	minter.AnnualProvisions = minter.NextAnnualProvisions(params, totalSupply)
diff --git a/x/mint/expected_keepers.go b/x/mint/expected_keepers.go
index 72bc36a5f5cd..5169b0957668 100644
--- a/x/mint/expected_keepers.go
+++ b/x/mint/expected_keepers.go
@@ -6,7 +6,7 @@ import (
 
 // expected staking keeper
 type StakingKeeper interface {
-	TotalPower(ctx sdk.Context) sdk.Int
+	TotalTokens(ctx sdk.Context) sdk.Int
 	BondedRatio(ctx sdk.Context) sdk.Dec
 	InflateSupply(ctx sdk.Context, newTokens sdk.Int)
 }
diff --git a/x/staking/keeper/alias_functions.go b/x/staking/keeper/alias_functions.go
index 848f66051880..aff57bda9fc5 100644
--- a/x/staking/keeper/alias_functions.go
+++ b/x/staking/keeper/alias_functions.go
@@ -87,13 +87,19 @@ func (k Keeper) ValidatorByConsAddr(ctx sdk.Context, addr sdk.ConsAddress) sdk.V
 	return val
 }
 
-// total power from the bond (not last, but current)
-func (k Keeper) TotalPower(ctx sdk.Context) sdk.Int {
+// total staking tokens supply which is bonded
+func (k Keeper) TotalBondedTokens(ctx sdk.Context) sdk.Int {
 	pool := k.GetPool(ctx)
 	return pool.BondedTokens
 }
 
-// total power from the bond
+// total staking tokens supply bonded and unbonded
+func (k Keeper) TotalTokens(ctx sdk.Context) sdk.Int {
+	pool := k.GetPool(ctx)
+	return pool.TokenSupply()
+}
+
+// the fraction of the staking tokens which are currently bonded
 func (k Keeper) BondedRatio(ctx sdk.Context) sdk.Dec {
 	pool := k.GetPool(ctx)
 	return pool.BondedRatio()
diff --git a/x/staking/types/validator.go b/x/staking/types/validator.go
index 7d1f6fa80b7c..08c095cd49a9 100644
--- a/x/staking/types/validator.go
+++ b/x/staking/types/validator.go
@@ -416,7 +416,7 @@ func (v Validator) BondedTokens() sdk.Int {
 }
 
 // get the Tendermint Power
-// a reduction of 10^9 from validator tokens is applied
+// a reduction of 10^6 from validator tokens is applied
 func (v Validator) TendermintPower() int64 {
 	if v.Status == sdk.Bonded {
 		return v.PotentialTendermintPower()