Cosmos Hub Rejects ATOM Inflation Reduction Proposal

Cosmos Hub has voted down a proposal that sought to significantly reduce ATOM’s InflationMin parameter.

Robot lady is sad that the ATOM proposal got rejected.
Created by Kornelija Poderskytė from DailyCoin
  • The Cosmos Hub community has concluded a vote.
  • The community voted down Proposal 868.
  • The proposal sought to decrease the InflationMin parameter.

Cosmos community members have voted down a proposal to reduce the inflationary pressure on the ATOM token in scenarios where two-thirds of the coin’s supply is bonded on the network.

Proposed by Stakelab, Proposal 868 aimed to introduce a drastic change in the network’s economic policy by decreasing the InflationMin parameter from 7% to 0%. Voting on the proposal opened on January 9 and closed on January 23.

Voting Results

Despite the proposal’s potential benefits, as highlighted by Stakelab, nearly half of the validators voted against it, denying Cosmos Hub the opportunity to explore alternative revenue streams from servicing “consumer chains” linked to the hub.

Particularly, 48.6% of validators (77,287,838 ATOM) voted down the proposal, against 25.1% (39,903,750 ATOM) in support. 25.9% of validators (41,196,314 ATOM) abstained from the vote, while 0.4% (580,026 ATOM) vetoed the proposal with a NO.

Renowned validators wielding immense voting power on the Cosmos hub that opposed the proposal included Everstake, Allnodes, Stake.fish, Cosmostation, Swish Staking, Keplr, Chorus One, Provalidator, Forbole, and others.

Validators who threw weight behind the proposal included Stakecito, Polkachu, Informal, Pryzm, Game, IrisNet, P2P, and Leap.

Voting on Proposal 868 came after the Cosmos Hub community recently voted for Proposal 848, setting a cap on the maximum inflation rate at 10%, down from the previous 20%, to mitigate token emissions.

In the meantime, per today’s voting outcome, the inflation rate on Cosmos Hub will likely continue to be a subject of significant discussions this year, given that some contributors want it to be as low as possible.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.