Cosmos Community Rejects Proposal For ATOM’s Inflation Being Reduced to 0%
The Cosmos community recently cast votes on Proposal 868, an initiative introduced by Cosmos contributor Stakelab.
This proposal aimed to address inflationary concerns surrounding the ATOM token by proposing a reduction in the minimum inflation parameter from 7% to 0%, contingent on over two-thirds of the ATOM supply being bonded on the network. Despite potential benefits, such as lowering the inflation rate in scenarios of increased bonded tokens, the proposal faced skepticism over the potential repercussions of reducing the inflation rate to zero, particularly in relation to the security of the Cosmos Hub.
The Cosmos Hub serves as the central nexus for the Cosmos ecosystem, fostering communication and interoperability among different blockchains within the network. ATOM, the native token of the Hub, is utilized for transaction fees, security, and governance.
The voting outcome revealed that 48.6% of validators opposed the proposal, while 25% supported it, and 25.9% abstained. Notable validators, wielding significant voting power, voted against the proposal.
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This recent proposal followed the acceptance of Proposal 848, which implemented a cap on the maximum inflation rate at 10%, down from the previous 20%, as a measure to regulate token emissions.
On Cosmos, validators not only participate in block creation but also engage in voting processes, with users having the option to delegate their stake to them.
The discussion around the inflation rate on the Cosmos Hub has been ongoing for the past year, with some contributors advocating for minimal inflation to optimize fresh emissions.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
