The Cosmos community has decided to reduce the annual inflation rate on the network’s native token, ATOM.
Cosmos Hub 12 November starting on and 26 November It hosted a critical vote that ended on . In this vote presented to the community, ATOM’s maximum inflation rate from 20% to 10%% of the current inflation ratefrom 14 to 10% and annual staking return about %from 19 approximately to 13.4% A reduction proposal was included.
The votes received in the first days were mainly aimed at rejecting the proposal, but the votes in favor, especially in the last 3 days, enabled the proposal to be accepted. The offer in question 41.1% in favor in return for votes 38.5% con It was narrowly accepted by a vote.
Even though the proposal was finalized, such a tough vote was a big issue among the community. voltage raised. Cosmos founder, who voted against the proposal, was not satisfied with this result and decided to split the network. In addition, remarkable statements came from the whales of the vote on the subject.
The community was split in two
The person with the largest number of votes in favor of the proposal Zero Knowledge Validatorargued that reducing the inflation rate would be a more positive development for the ecosystem:
Double-digit inflation is not necessary for security, it will weaken the price of ATOM in the long term and discourage the use of ATOM in DeFi and elsewhere in the Atomic Economic Zone.
Biggest dissenting vote AllNodes He said that this proposal was an idea that was not well researched:
This proposal is a sudden, short-sighted, and poorly researched idea that could harm retailers and businesses that build, trade, and validate ATOM.