Cosmos Community Rejects Proposal to Eliminate Inflation

The Cosmos Hub community has rejected proposal 868, which aimed to reduce the minimum inflation of the native ATOM token from 7% to 0%.

48.6% voted against the initiative, 25.1% supported it, and 25.9% abstained from voting.

Validators voting against the proposal included Everstake, Cosmostation, Chorus One, Allnodes, Stake.fish, Swish Stting, Forbole, Provalidator, Keplr, and others. Supporters of the initiative included Game, Informal, Stakecito, P2P, Polkachu, Pryzm, IrisNet, and Leap.

Proposal 868, introduced by a member of Cosmos Stakelab, sought to alleviate inflationary pressure on ATOM, particularly in scenarios where a significant portion of coins is bonded.

The changes were expected to increase the annual yield of ATOM staking.

Despite potential benefits, some community members expressed concerns about negative consequences, including impacts on the security of Cosmos Hub. The hub serves as a central node of the ecosystem, facilitating communication and interaction between various blockchains.

In November 2023, the community decided to reduce the maximum inflation level from 20% to 10%. Proposal 848 was accepted by 41% of the ecosystem participants.

Earlier, Cosmos developers unveiled plans for the development of the Inter-Blockchain Communication protocol in 2024, focusing on seamless network integration with an emphasis on scalability and convenience.

Back in September 2023, developers of the platform added a liquid staking module to the central blockchain of the Cosmos Hub ecosystem during the upgrade to version v12.