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Cosmos Hub greenlights ATOM inflation cut for security boost
he governing body of Cosmos Hub has endorsed a proposal to decrease the maximum inflation rate of its native token, Cosmos, from 14% to 10%.
According to the proposal, the authorized modification would reduce ATOM’s annualized staking yield from around 19% to approximately 13.4%. The Cosmos Hub is the primary blockchain within the Cosmos network, a system of interlinked blockchains. The ATOM token is employed for staking, governance and transaction fees.
The proposal narrowly passed, with 41.1% of votes for and 38.5% of votes against. It was expected to fail shortly before the deadline, but a last-minute influx of votes and some reversals from validators narrowly tilted the outcome in favor.
The proposal stated that ATOM’s elevated inflation rate resulted in the Cosmos Hub overspending on security. It also argued that validators could still achieve breakeven or profitability with inflation reduced to 10%.
Read More: https://cointelegraph.com/news/cosmos-hub-greenlights-atom-inflation-cut-for-security-boost
he governing body of Cosmos Hub has endorsed a proposal to decrease the maximum inflation rate of its native token, Cosmos, from 14% to 10%.
According to the proposal, the authorized modification would reduce ATOM’s annualized staking yield from around 19% to approximately 13.4%. The Cosmos Hub is the primary blockchain within the Cosmos network, a system of interlinked blockchains. The ATOM token is employed for staking, governance and transaction fees.
The proposal narrowly passed, with 41.1% of votes for and 38.5% of votes against. It was expected to fail shortly before the deadline, but a last-minute influx of votes and some reversals from validators narrowly tilted the outcome in favor.
The proposal stated that ATOM’s elevated inflation rate resulted in the Cosmos Hub overspending on security. It also argued that validators could still achieve breakeven or profitability with inflation reduced to 10%.
Read More: https://cointelegraph.com/news/cosmos-hub-greenlights-atom-inflation-cut-for-security-boost
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