Cosmos community votes on proposal to push ATOM toward zero minimum inflation

The Cosmos (ATOM) community is voting on a proposal to set the minimum inflation rate at 0% a month after approving to reduce the maximum inflation level to 10%. Inflation is the reduction in the underlying asset's value as its circulating supply increases.

The Cosmos community has until January 23 to decide for or against the request.

If approved, ATOM stakers and holders are likely to benefit from reduced inflation, since even if all tokens are staked at a given point in time, the network will inevitably produce 7% more tokens annually. This ATOM emission is being addressed by changing the minimum inflation parameter and setting it to zero.

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Cosmos community votes on Proposal 868 

The Cosmos Hub for governance announced that Proposal 868 is open for voting, in its official tweet on X (formerly Twitter). The plan is to reduce minimum inflation to zero from the current 7%. 

This proposal was introduced as a follow-up to Proposal 848, which called to limit ATOM inflation to 10% so holders and stakers can benefit from the limited supply of the asset in circulation. Once Proposal 868 is passed, the inflation rate will trend towards 0%.

The network considers it is important to set both a minimum and maximum inflation for ATOM to address security concerns and to encourage staking in the ecosystem. By proposing a minimum inflation rate, the network expects revenue from consumer chains to become substantial.

At the time of writing, ATOM's price is $9.841, down 12% in the past week.