Cosmos Community Votes on Reducing Inflation to 0%

Within the Cosmos Hub ecosystem, a vote has commenced on reducing the minimum inflation of the native ATOM token to zero.

The proposal has garnered support from 94.5% of community participants, with 4.5% opposing.

The quorum is set at 40%, with only 1.4% reached so far. The voting period runs from January 9 to January 23.

The proposal aims to change the “InflationMin” parameter to 0%.

In November 2023, the community voted to reduce the minimum inflation from 14% to 10%. However, the ultimate goal of the initiative was its complete elimination.

“This adjustment provides flexibility and allows stakeholders and investors to fine-tune the overall percentage of bonded tokens based on incentives provided by the emission level, in the absence of specific revenues from consumer networks,” the proposal states.

Initially, the changes were expected to increase the annual yield from staking ATOM.

The proposal’s authors argue that the token’s high inflation level compared to competitors represents an “overpayment for security.”

Meanwhile, the maximum inflation level in the ecosystem (“InflationMax”) is set at 20%.

Earlier, Cosmos developers unveiled plans for the development of the Inter-Blockchain Communication protocol in 2024, aimed at “seamlessly” integrating networks with a focus on scalability and convenience.

Back in September, developers of the platform added a liquid staking module to the central blockchain of the Cosmos Hub ecosystem during the upgrade to version v12.