Cosmos developers propose reducing ATOM inflation rate
The minimum inflation rate for ATOM could potentially be reduced to 0% per annum.
Developers of inter-blockchain communications (IBC) protocol Cosmos want to further reduce the inflation of its native token, ATOM.
According to a Jan. 9 proposal by StakeLab, a staking and relaying hub on the Cosmos ecosystem, developers wish to reduce the minimum inflation of ATOM to 0%. ATOM's current inflation rate is between 7% and 20% and will be reduced to 0% or 20% if the proposal passes. A quorum of 40% of ATOM's outstanding supply and sufficient yes votes are required before Jan. 23 for the proposal to pass. In outlining the rationale for the proposal, StakeLabs wrote:
StakeLab further explained that the community should consider the viability of transferring protocol revenue from emerging Cosmos consumer chains to ATOM stakers instead of issuing tokens outright. "It may not make sense to maintain a 7% annual emission rate if the revenue from consumer chains becomes substantial," the firm wrote.
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