Cosmos community members voted against Proposition 868. More than 2/3 brings a major change to the network’s economic policy by reducing the minimum inflation parameter from 7% to 0%. atom
-5.00%
Supply was tied to the network. However, this proposal failed to gain support.
Proposal 868, introduced by Cosmos contributor Stakelab, is intended to alleviate inflationary pressures on ATOM tokens, especially in scenarios where a significant portion of the coins are deposited.
Despite the potential benefits highlighted by proponents, such as lowering the inflation rate if the total bonded tokens rise, concerns have been raised about lowering the inflation rate to zero, particularly the impact on the security of the hub.
The Hub acts as a central hub for the Cosmos ecosystem, facilitating communication and interoperability between the various blockchains built on Cosmos. ATOM is the hub’s native token used for transaction fees, security, and governance.
voting results
48.6% of validators voted against the proposal, 25% supported it, and 25.9% abstained.
Notable validators who voted against the proposal with significant voting power include Everstake, Cosmostation, Chorus One, Allnodes, Stake.fish, Swish Stake, Forbole, Provalidator, and Keplr. Validators who supported the proposal included Game, Informal, Stakecito, P2P, Polkachu, Pryzm, IrisNet, Leap, and others.
This latest proposal follows Proposition 848, which lowered the maximum inflation rate cap to 10% from the previous 20% to regulate token emissions.
In Cosmos, validators additionally vote on building blocks, and voters can delegate their stake to validators.
Cosmos Hub’s inflation rate has been an important topic of discussion over the past year. Some Cosmos contributors want to minimize it as much as possible, believing that this optimizes new emissions.
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