Cosmos pop #848 passes, reducing inflation by half. Community split.
1 min read
After weeks of heated debate and bated breath, proposal #848 passed with a narrow margin. This reduces the inflation rate from 20% to 10%. With a 70.9% turnout, this is the highest turnout in Cosmos Hub history.
There’s already talk of forking the chain as big whales and co-founder Jae Kwon say they will not stand for this.
Summary of Proposal 848:
-This proposal seeks to reduce the ATOM inflation rate from ~14% to 10%, which would bring its Staking APR from ~19% to ~13.4%.
-This will be the first of three proposals being voted on to reduce inflation, provide better incentives for staking, and improve security of the network.
-Research conducted by Blockworks Research found that ATOM is overpaying for security and transitioning to a set supply schedule was suggested.
-Nearly all 180 validators are break-even or profitable at 10% max inflation off of commission alone, and validators have the option to increase their commission rate to help cover operational expenses.
submitted by /u/Human-go-boom
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