The Cosmos community has initiated a vote on the ATOM halving proposal, aiming to reduce the maximum inflation parameter of ATOM from 20% to 10%. This proposal, if accepted, will result in a notable drop in the current inflation rate, decreasing from approximately 14% to 10%. Additionally, the staking Annual Percentage Rate (APR) is expected to decline from around 19% to approximately 13.4%.
Research conducted by Blockworks Research has indicated that ATOM may be overpaying for security, prompting the suggestion to transition to a set supply schedule. According to their findings, nearly all 180 validators are either breaking even or turning a profit at a 10% maximum inflation rate, supported solely by commission. Validators also have the option to increase their commission rate to help cover operational expenses.
As the voting process unfolds, 40.8% of the voters have rejected the proposal, while 36.9% have voted in favor. A minimal 1.3% have voted no with a veto, indicating a strong rejection of the proposal. The remaining participants have chosen to abstain from voting. The voting period is set to conclude on November 26th.
Cosmos
