Cosmos Community Rejects Proposal to Reduce Inflation Rate
Cosmos community members recently voted against Proposal 868, which aimed to decrease the network’s minimum inflation parameter from 7% to 0%. The proposal would have required over two-thirds of the ATOM supply to be bonded on the network. However, this suggestion did not gain enough support.
Proposal 868 was introduced by Cosmos contributor Stakelab as a way to address inflationary pressures on the ATOM token when a significant portion of coins are bonded. Despite potential benefits, concerns were raised about the impact of reducing the inflation rate to zero on the Hub’s security.
The Hub serves as the central hub for the Cosmos ecosystem and uses ATOM as its native token for transactions, security, and governance.
Voting Outcome
A total of 48.6% of validators voted against Proposal 868, while 25% supported it and 25.9% abstained. Notable validators who opposed the proposal included Everstake, Cosmostation, Chorus One, Allnodes, Stake.fish, Swish Staking, Forbole, ShapeShift DAO, Provalidator, Keplr, and others.
Validators that supported the proposal included Game, Informal, Iqlusion, Stakecito, P2P, Polkachu, Pryzm, IrisNet, Leap, and more.
This proposal followed another accepted one that set a cap on the maximum inflation rate at 10%, down from the previous 20%, in order to regulate token emissions.
In addition to building blocks on Cosmos, validators also have voting power and can receive stake delegation from voters.
The inflation rate on Cosmos Hub has been a topic of discussion for some time. While some contributors advocate for minimal inflation, others believe it optimizes fresh emissions.
Hot Take: Cosmos Community Rejects Inflation Reduction Proposal
The Cosmos community recently voted against Proposal 868, which aimed to decrease the minimum inflation rate on the network. While the proposal had potential benefits, concerns were raised about its impact on the Hub’s security. This decision highlights the ongoing debate surrounding the inflation rate on Cosmos and the differing opinions within the community. Moving forward, it will be interesting to see how this discussion evolves and whether future proposals will be able to find a middle ground that satisfies all stakeholders.
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