The Cosmos community votes to set ATOM’s minimum inflation rate to 0%
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The Cosmos Hub ecosystem community has begun voting on a proposal to set the minimum inflation rate for ATOM tokens at 0%.
Vote yes start The minimum inflation rate of ATOM tokens is set to 0% in the Cosmos Hub community. Nearly 95% of community members have currently voted in favor of the proposal, which began on January 9th and will end on January 23rd. Only 4.4% of people opposed the inflation of the project’s native token, and 0.1% of community members used veto power.
Curbing inflation helps preserve the value of the ATOM cryptocurrency. The coin is under constant pressure from sellers, causing the price to depreciate. Another negative that the community hopes to eliminate is the high security payout compared to other blockchains, which hurts ATOM’s rewards.
Meanwhile, in November 2023, the Cosmos network voted to determine the maximum inflation level for the ATOM cryptocurrency. Thereafter, ATOM inflation cannot exceed 10% per year. This will help maintain the value of the token, but will impact the profitability of staking. The previous high of inflation was 20%.
After the update was implemented, Cosmos staking yield dropped from 19% to 13.4%. Despite the drop in revenue, almost all 180 validators broke even or even continued to be profitable. Additionally, to cover the fees, they will be able to increase the size of the commission for processing transactions.
