The Cosmos Hub ecosystem group has begun voting on a proposal to set the minimal inflation price for the ATOM token at 0%.
Voting has begun within the Cosmos Hub group to set the minimal inflation price for the ATOM token at 0%. Nearly 95% of group members are presently voting for the proposal, which started on Jan. 9 and can finish on Jan. 23. Solely 4.4% had been in opposition to inflation of the mission’s native token, and 0.1% of group members used the correct of veto.
Containing inflation may also help protect the worth of the ATOM cryptocurrency. The token was beneath fixed strain from sellers, which led to cost depreciation. One other destructive issue the group hopes to remove is overpayments for safety in comparison with different blockchains, which harmed the rewards in ATOM.
On the identical time, in November 2023, the Cosmos community voted for the utmost inflation stage for the ATOM cryptocurrency. After this, ATOM inflation can not exceed 10% every year. This may assist protect the token’s worth however will have an effect on the profitability of staking. The earlier excessive for inflation was 20%.
After the replace was carried out, the Cosmos staking yield dropped from 19% to 13.4%. Regardless of the decline in income, nearly all 180 validators broke even and even continued to earn earnings. As well as, to be able to cowl their bills, they’ll have the ability to improve the scale of the fee for processing transactions.