Cosmos Community Voting to Reduce $ATOM Inflation Rate from 20% to 10%

Nov 17, 2023

The Cosmos community has initiated a vote on the ATOM halving proposal, aiming to reduce the maximum inflation parameter of ATOM from 20% to 10%. This proposal, if accepted, will result in a notable drop in the current inflation rate, decreasing from approximately 14% to 10%. Additionally, the staking Annual Percentage Rate (APR) is expected to decline from around 19% to approximately 13.4%.

Research conducted by Blockworks Research has indicated that ATOM may be overpaying for security, prompting the suggestion to transition to a set supply schedule. According to their findings, nearly all 180 validators are either breaking even or turning a profit at a 10% maximum inflation rate, supported solely by commission. Validators also have the option to increase their commission rate to help cover operational expenses.

As the voting process unfolds, 40.8% of the voters have rejected the proposal, while 36.9% have voted in favor. A minimal 1.3% have voted no with a veto, indicating a strong rejection of the proposal. The remaining participants have chosen to abstain from voting. The voting period is set to conclude on November 26th.


This article is for informational purposes only. It is not offered or intended to be used as investment or other advice.

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