Cosmos Approves Reduction in Inflation Rate
The governing body of the Cosmos Hub has approved a proposal to reduce the maximum inflation rate of its native token, Cosmos (ATOM), from 14% to 10%. This decision aims to address concerns about the high inflation rate’s impact on network security and token prices. As a result of this adjustment, the annualized staking yield for ATOM will decrease from around 19% to approximately 13.4%. ATOM tokens play essential roles in staking, governance, and covering transaction fees within the Cosmos network. The proposal faced a close vote, with 41.1% in favor and 38.5% against.
Jae Kwon Plans a Hard Fork
Despite his opposition to the production reduction vote, Cosmos founder Jae Kwon has announced plans to fork Cosmoshub4 and create a new network named AtomOne. This upcoming network will operate autonomously with its own governance plan and development team, focusing on achieving increased decentralization.
Kwon’s Proposal to Integrate ATOM Tokens
In response to the developments, Jae Kwon has proposed integrating $ATOM with $ATMO/$ATOM1 to prevent mass selling and potential market collapse. Kwon emphasizes the need for improvements to the README and invites tokenomics experts to contribute ideas. The proposal involves forking “cosmoshub4” while maintaining the current software but implementing an independent plan with decentralized development teams. Kwon highlights the decentralized nature of blockchain networks, asserting that even a minority with logical reasoning can self-organize and resist majority control.
Hot Take: Cosmos Strives for Increased Decentralization
Cosmos is taking steps towards increased decentralization by reducing its inflation rate and exploring new network options. The recent vote to decrease the maximum inflation rate of ATOM tokens reflects concerns about network security and token prices. However, Cosmos founder Jae Kwon disagrees with this decision and plans to fork Cosmoshub4 to create a new network called AtomOne. This move aims to achieve greater decentralization and involve an independent development team. Kwon’s proposal to integrate ATOM tokens also demonstrates his commitment to preventing market collapse and fostering community participation. As Cosmos continues to evolve, it remains focused on building a resilient and successful blockchain ecosystem.
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