Cosmos Hub cryptocurrency community Cosmos (ATOM) made an important decision regarding the issuance of the token. The proposal titled “Reducing ATOM Production: Proposal to Set the Maximum Inflation Rate as 10%” was accepted with 41.1% approval and 31.9% rejection votes.
This means that ATOM maximum inflation will be reduced from 20% to 10%, and the annual interest rate of staking will be reduced from 19% to 13.4%.
The voting results were as follows:
YES: 41.1% (73,165,203 ATOM)
NO: 31.9% (56,667,011 ATOM)
VETO: 6.6% (11,669,549 ATOM)
Abstaining: 20.4% (36,323,836 ATOM)
The vote, which was neck-and-neck until the final moments, was accepted with a large increase in votes in favor of YES in the minutes before its conclusion earlier today.
This proposal was aimed at reducing the ATOM inflation rate from approximately 14% to 10%, which would bring the Staking APR from approximately 19% to approximately 13.4%. The proposal in question was the first of three proposals voted on to reduce inflation, provide better incentives for staking, and increase the security of the network.
Research by Blockworks Research revealed that ATOM was overpaying for security and recommended switching to a specific procurement schedule. Nearly all 180 validators are break-even or profitable on commission fees alone at 10% maximum inflation, and validators will have the option to increase commission rates to help cover operational expenses.
*This is not investment advice.
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