Cosmos Hub Approved Proposal to Reduce $ATOM Inflation From 14% to 10%

The Cosmos Hub community has approved the proposal to decrease the maximum inflation rate of $ATOM token from 14% to 10%. Annual staking yield for ATOM will also reduce from around 19% to 13.4%.

The proposal was narrowly passed, with 41.1% of votes for and 38.5% of votes against. The proposal deemed that ATOM's elevated inflation rate resulted in the Comos Hub overspending on secrurity. It also argued that validators could still achieve breakeven or profitability with inflation reduced to 10%.

Zero Knowledge Validator casted the largest vote in favor of the proposal, it explained:"Double digit inflation is not necessary for security, weakens ATOM price long term, and disincentivizes use of ATOM in DeFi and elsewhere in the ATOM Economic Zone."