Cosmos Community Votes to Reduce ATOM Inflation Rate

The developers behind Cosmos’ inter-blockchain communications (IBC) protocol have proposed a plan to decrease the inflation rate of their native token, ATOM.

In the proposal submitted by StakeLab on Jan. 9, a staking and relaying hub within the Cosmos ecosystem, developers aim to lower the minimum inflation of ATOM to 0%.

Currently, ATOM’s inflation rate ranges from 7% to 20%, but if the proposal is successful, it will be either 0% or 20%. In order for the proposal to pass, at least 40% of the outstanding ATOM supply must vote in favor before Jan. 23.

StakeLab’s rationale for the proposal is that a minimum inflation rate of 7% implies that even if 100% of the token supply is staked, the network will continue to produce an additional 7% of tokens annually.

This raises concerns as it does not align with any other successful blockchain models.