The governing body of Cosmos Hub has supported a proposal to reduce the maximum inflation rate of its native token, ATOM.atom), from about 14% to 10%.
According to Proposal, the authorized amendment would reduce Atom’s annual share yield from about 19% to about 13.4%. Cosmos Hub is the primary blockchain within the Cosmos Network, a system of interlinked blockchains. The native token of Hub is Atom, which is used for staking, governance and transaction fees.
The proposal received a narrow passage, receiving 41.1% approval votes compared to 38.5% rejection, marking the highest voting vote in the Cosmos ecosystem. Initially expected to fail shortly before the deadline, a last-minute influx of votes and some reversals of validators tilted the result in favor.
The proposal argued that Cosmos Hub is costing more to secure as a result of Atom’s increased inflation rate compared to similar tokens. It was also argued that validators could still achieve breakeven or profitability even if inflation was reduced to 10%.
Zero Knowledge Validator, the entity with the most votes in favor of the proposal, justified its support on X. a post emphasis on this“Double-digit inflation is unnecessary for the security, weakens the price of ATOM in the long run, and discourages the use of ATOM in DeFi and other areas within the ATOM economic sector.”
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The most significant opposition vote was cast by a validator, Allnodes. mentioned In a post on Can wreak havoc on businesses engaged in. , and validating Atom.
cosmos hub recent Upgraded to Launch Liquid Staking Module, enabling users to bypass the previous 21-day unstaking period by unstaking ATOM funds. Before the upgrade, ATOM holders had a 21-day locking period to transfer their funds after unstaking the tokens. With the new module, staked ATOM can be used in the Cosmos decentralized finance (DeFi) ecosystem without compromising the yields from staking.
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