The Cosmos Hub community is actively voting on a proposal to institute a 0% minimum inflation rate for the ATOM token, spanning from Jan. 9 to Jan. 23.
With nearly 84.4% community backing, the initiative aims to combat ATOM token depreciation from selling pressure, eliminating overpayments for security, with only 4% opposed and 1.2% exercising the right of veto.
In November 2023, the Cosmos network had previously voted to cap the maximum inflation for ATOM at 10% annually, a strategic move aimed at preserving the token’s value. Although this impacted staking profitability, reducing yields from 19% to 13.4%, the majority of the 180 validators still maintained profitability.
This decision to set the minimum inflation rate at 0% underscores the community’s dedication to addressing these issues and upholding the stability and value of the ATOM token.
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