Cosmos Developer Proposes Cutting ATOM Inflation Rate in Half
A developer for Cosmos (ATOM) has put forward a proposal to reduce the maximum inflation rate of the project’s native asset by half. Zaki Manian, co-founder of decentralized asset management protocol Sommelier, has suggested changing the max inflation parameter on Cosmos from 20% to 10%, effectively lowering the inflation rate to 10%. Manian believes that Cosmos is overpaying stakers and that reducing the staking rate could drive more users towards other platforms for higher yield. The proposal would impact the growth rate of the community pool, and a separate proposal to increase the community pool take should also be considered.
About Cosmos and ATOM
Cosmos is an interoperable blockchain ecosystem that aims to connect different blockchains. Its native token, ATOM, is currently trading at $7.14. Zaki Manian played a key role in building the Cosmos ecosystem and launching its first public testnet. His project, Sommelier, focuses on maximizing interoperability with other blockchains.
Hot Take: Lowering Inflation to Boost Adoption
The proposal to cut ATOM inflation in half is an attempt to address what the developer sees as an overpayment issue within the Cosmos ecosystem. By reducing the staking rate, it is hoped that more users will be incentivized to explore other platforms offering higher yields. This change could lead to increased adoption of Cosmos Liquid Staking Module and other related projects. However, it remains to be seen how this proposal will be received and whether it will ultimately be implemented.
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