- The Cosmos community is voting a proposal to push the minimum inflation rate to 0%.
- The Cosmos network is expected to produce 7% additional tokens annually even if the entire ATOM supply is staked.
- The Cosmos community already approved capping ATOM maximum inflation at 10%.
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.
Also read: Bitcoin price gears up for rally to $50,000 as Spot BTC ETF race for approval intensifies
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%.
1/ ⚛️ Cosmos Hub Gov ⚛️
— Cosmos Hub ⚛️ (@cosmoshub) January 9, 2024
Voting period is open for Prop #868
‘’Decrease InflationMin parameter to 0%’’
This prop aims to reduce the min inflation param from 7% to 0%.
If the proposal passes, once the 67% goal of bonded ATOM is reached, the inflation rate will trend towards 0% pic.twitter.com/xKwXooHGXF
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin holds steady, Fed warns of tariffs’ impact, as Gold hits new highs
Bitcoin price consolidates above $84,000 on Friday, a short-term support that has gained significance this week. The world's largest cryptocurrency by market capitalization continued to weather storms caused by US President Donald Trump's incessant trade war with China after pausing reciprocal tariffs for 90 days on April 9 for other countries.
Official Trump massive $300M token unlock spells doom
Official Trump ($TRUMP), the Presidential meme coin launched in January by the United States (US) President Trump family’s World Liberty Financial company, is in a precarious situation that could see volatility spike significantly.
How will President Trump's threat to Powell affect Bitcoin?
Bitcoin (BTC) traded above $84,000 on Friday as President Donald Trump slammed Federal Reserve (Fed) Chairman Jerome Powell for not cutting interest rates on time. Trump pointed to the European Central Bank (ECB) lowering rates by 25 basis points, urging Powell to do the same in the US.
Slovenia moves to impose 25% tax on crypto traders
Slovenia has become the latest European Union member state to crack down on untaxed crypto gains, unveiling a proposal to impose a 25% tax on personal profits from digital asset disposals starting in 2026.
Bitcoin Weekly Forecast: BTC holds steady, Fed warns of tariffs’ impact, as Gold hits new highs
Bitcoin price consolidates above $84,000 on Friday, a short-term support that has gained significance this week. The world's largest cryptocurrency by market capitalization continued to weather storms caused by US President Donald Trump's incessant trade war with China after pausing reciprocal tariffs for 90 days on April 9 for other countries.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.