BTC-Newswire

Cosmos Hub approves proposal to slash ATOM inflation

Press Releases Crypto News Crypto-News Cosmos Hub approves proposal to slash ATOM inflation

The Cosmos Hub community is giving the green light to a proposal aimed at reducing the maximum inflation rate of its native token, Cosmos (ATOM), from 14% to 10% as a security enhancement measure.

The objective of this proposal is to decrease the annual interest rate for stakers, with the intention of fostering long-term profitability and facilitating price growth in ATOM.

The proposal, which garnered 41.1% support, narrowly passed with 38.5% of votes against it, marking the highest-ever turnout vote in the Cosmos ecosystem. The approved change is set to bring Atom’s annualized staking yield from approximately 19% to about 13.4%.

According to the proposal, the Cosmos Hub experienced excessive spending on security due to ATOM’s high inflation rate. It contended that by reducing inflation to 10%, validators could still attain breakeven or profitable outcomes.

The proposal received substantial support from Zero Knowledge Validator, while the largest vote against it came from validator AllNodes, In a post on X (formerly known as Twitter), concerns were raised that the proposed change might adversely affect small validators. Additionally, further reducing inflation could centralize the ecosystem without necessarily improving token value. Hasty, untested adjustments have the potential to compromise network integrity.

The Cosmos Hub serves as the central blockchain in the Cosmos network, which comprises a network of interconnected blockchains. The ATOM token is utilized for staking, governance, and transaction fees within this ecosystem.

With the approval of the ATOM halving proposal, the community anticipates higher profitability and potential appreciation of the token’s price in the long term. As of the current update, the price of ATOM stands at $9.54 on

Go to Source to See Full Article
Author: Ogwu Osaemezu Emmanuel

Did you like this?
Tip BTC Newswire with Cryptocurrency