{"id":65565,"date":"2023-11-26T16:41:09","date_gmt":"2023-11-26T20:41:09","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=65565"},"modified":"2023-11-26T16:42:26","modified_gmt":"2023-11-26T20:42:26","slug":"cosmos-community-approves-capping-atom-inflation-rate-at-10","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/cosmos-community-approves-capping-atom-inflation-rate-at-10\/","title":{"rendered":"Cosmos Community Approves Capping Atom Inflation Rate at 10%"},"content":{"rendered":"\n

The Cosmos Hub governing committee has approved a plan to lower the maximum inflation rate <\/a>of Cosmos (ATOM $9.56), the company's native token, from 14% to 10%.<\/p>\n\n\n\n

\"Cosmos
Cosmos Community Approves Capping Atom Inflation Rate at 10%<\/figcaption><\/figure>\n\n\n\n

The approved change, as proposed, would cause ATOM's annualized staking yield<\/a> to drop from about 19% to about 13.4%. Within the Cosmos network, a network of connected blockchains, the Cosmos Hub is the main blockchain. <\/p>\n\n\n\n

The ATOM token handles transaction fees, governance, and staking. Voters barely approved the initiative, with 41.1% voting in favor and 38.5% voting against. It was predicted to fail shortly before the deadline, but a late surge of votes and a few reversals from validators just barely swung the balance in favor.<\/p>\n\n\n\n

\"Screenshot
Screenshot of the proposal. Source: Mintscan<\/figcaption><\/figure>\n\n\n\n

The proposal claimed that the Cosmos Hub overspent on security due to ATOM's high rate of inflation. Furthermore, it contended that validators might still turn a profit or break even with inflation as low as 10%.<\/p>\n\n\n\n

The group that supported the proposal with the most votes, Zero Knowledge Validator<\/a>, provided an explanation for their support on X (previously Twitter). According to a post:<\/p>\n\n\n\n

\n

\u201cDouble-digit inflation is unnecessary for security, undermines Atom price in the long run, and discourages the use of ATOM in DeFi and other areas within the Atom Economic Zone.\u201d<\/p>\n<\/blockquote>\n\n\n\n

A validator named AllNodes cast the largest opposition vote, outlining its opposition in a post on X. The plan was described as “an abrupt, short-sighted, and ill-researched idea that might wreak havoc on retail and businesses engaged in building, trading, and validating Atom” by AllNodes, who claimed that the change could have a negative effect on tiny validators.<\/p>\n\n\n\n

Users can now unstake ATOM funds and avoid the previous 21-day unbonding period thanks to a recent update from Cosmos Hub that launched a liquid staking module. <\/p>\n\n\n\n

Prior to the update, holders of ATOM had a 21-day window during which they could transfer their money after unstaking the token. Staked ATOM may now be utilized in Cosmos' decentralized finance ecosystem\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> without lowering stake rewards, thanks to the new module.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Cosmos Hub governing committee has approved a plan to lower the maximum inflation rate of Cosmos (ATOM $9.56), the company’s native token, from 14% to 10%. The approved change, as proposed, would cause ATOM’s annualized staking yield to drop from about 19% to about 13.4%. Within the Cosmos network, a network of connected blockchains, […]<\/p>\n","protected":false},"author":43,"featured_media":65567,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[17356,17355,197],"class_list":["post-65565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-atom","tag-cosmos-community","tag-defi"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/11\/croc_1701029686451.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/65565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=65565"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/65565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/65567"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=65565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=65565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=65565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}