{"id":24733,"date":"2023-11-26T13:05:58","date_gmt":"2023-11-26T13:05:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cosmos-proposal-to-cap-atom-inflation-rate-at-10-passed\/"},"modified":"2023-11-26T13:05:58","modified_gmt":"2023-11-26T13:05:58","slug":"cosmos-proposal-to-cap-atom-inflation-rate-at-10-passed","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cosmos-proposal-to-cap-atom-inflation-rate-at-10-passed\/","title":{"rendered":"Cosmos proposal to cap ATOM inflation rate at 10% passed"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1660936694757-2bce7365-8a9b-48a9-b4ef-5697d6fdd202-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1660936694757-2bce7365-8a9b-48a9-b4ef-5697d6fdd202-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1660936694757-2bce7365-8a9b-48a9-b4ef-5697d6fdd202-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2022\/08\/1660936694757-2bce7365-8a9b-48a9-b4ef-5697d6fdd202-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li dir=\"ltr\">The Cosmos Hub community has approved a proposal capping ATOM\u2019s maximum inflation rate at 10%<\/li>\n<li dir=\"ltr\">Per the proposal, validators can still break even or turn profits at 10% inflation<\/li>\n<li dir=\"ltr\">Reducing inflation rate will help Cosmos\u2019 security and growth potential.<\/li>\n<\/ul>\n<p dir=\"ltr\">The latest <a href=\"https:\/\/coinjournal.net\/news\/tag\/cosmos\/\">Cosmos news<\/a> is that the community has approved a proposal that seeks to cut the maximum inflation rate of ATOM to 10%. The Cosmos Hub X account shared the results of the vote that ended on November 26.<\/p>\n<p dir=\"ltr\"><a href=\"https:\/\/www.mintscan.io\/cosmos\/proposals\/848\" rel=\"noopener noreferrer\" target=\"_blank\">Proposal 848<\/a>, dubbed the \u201cATOM Production Reduction: Proposal to Set the Maximum Inflation Rate to 10%\u201d passed with 41.1% of the vote in support and 31.9% against. Vote turnout was more than 72%, the highest in the Cosmos Hub\u2019s history.\u00a0<\/p>\n<h2 dir=\"ltr\">ATOM\u2019s maximum inflation rate to reduce from 20% to 10%<\/h2>\n<p dir=\"ltr\">Approval means the cryptocurrency\u2019s maximum inflation parameter will be reduced from 20% to 10%, bringing the current inflation rate down from 14% to 10%. Cosmos Hub\u2019s annualized staking yield will also reduce from 19% to about 13.4%.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Proposal #848 is approved \u2705<\/p>\n<p>The max inflation parameter will be reduced from 20% to 10%, bringing ATOM\u2019s current inflation rate to 10%.<\/p>\n<p>This decision comes with the highest turnout in Cosmos Hub history: 72.7% <a href=\"https:\/\/t.co\/03MPSsUsmx\">pic.twitter.com\/03MPSsUsmx<\/a><\/p>\n<p>\u2014 Cosmos Hub \u269b\ufe0f (@cosmoshub) <a href=\"https:\/\/twitter.com\/cosmoshub\/status\/1728519681236177234?ref_src=twsrc%5Etfw\">November 25, 2023<\/a><\/p>\n<\/blockquote>\n<p dir=\"ltr\">Per the proposal, capping the inflation is crucial to <a href=\"https:\/\/coinjournal.net\/cosmos\/\">Cosmos (ATOM)<\/a> maintaining its value proposition in the market as it looks to attract more consumer chains.<\/p>\n<p dir=\"ltr\">High inflation has meant Cosmos\u2019 DeFi yield is dwarfed by competing chains, affecting user growth. The proposal to reduce the inflation rate therefore not only has the potential to accelerate adoption of IBC DeFi protocols, but also see ATOM get better traction as collateral and a liquidity gateway.<\/p>\n<p dir=\"ltr\">The other argument is that at the current inflation rate, Cosmos Hub is overpaying for security relative to its peers, which harms ATOM\u2019s monetary premium. It\u2019s also had the governance token under constant sell pressure, hurting price performance.<\/p>\n<p dir=\"ltr\">According to the proposal, nearly all validators will still be at break even or profitable levels with 10% max inflation. Validators can also opt for increased commission rates to cover operational expenses or turn profits.<\/p>\n<p dir=\"ltr\">The price of ATOM was up nearly 9% on Sunday morning, changing hands at $9.64.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/cosmos-proposal-to-cap-atom-inflation-rate-at-10-passed\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) The Cosmos Hub community has approved a proposal capping ATOM\u2019s maximum inflation rate at 10% Per the proposal, validators can still break even or turn profits at 10% inflation Reducing inflation rate will help Cosmos\u2019 security and growth potential. The latest Cosmos news [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":24734,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/24733"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=24733"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/24733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/24734"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=24733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=24733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=24733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}