BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Cosmos Contemplates Drastic Cut to ATOM Inflation to Zero Percent

by BlockNews.com Team
January 9, 2024
in Business, Crypto, Finance
A A
Cosmos Contemplates Drastic Cut to ATOM Inflation to Zero Percent
5
SHARES
Share on TwitterShare on Reddit
  • Cosmos ecosystem is proposing reducing ATOM token inflation rate from minimum 7% to 0% annually.
  • Supporters argue current minimum 7% inflation rate is unnecessary and not aligned with other blockchain models. With new revenue sources, stakers could be rewarded without minting new tokens.
  • Proposal requires 40% of outstanding supply to vote in favor by Jan 23rd. If passed, this would significantly change Cosmos’ tokenomics and staking incentives.

The Cosmos ecosystem is proposing a reduction in inflation for its native token, ATOM. This would lower the minimum annual inflation rate from 7% to 0%.

JUST IN: @Cosmos developers propose reducing $ATOM inflation to 0%

Current inflation rate is between 7% and 20%

New inflation will be 0% or 20% if the proposal passes

Is this a smart decision?

— BlockNews.com (@blocknewsdotcom) January 9, 2024

Background on Cosmos and ATOM

Cosmos is a decentralized network of independent blockchains, powered by its IBC protocol. ATOM is the native token of the Cosmos ecosystem.

Current ATOM Inflation Rate

The current annual inflation rate for ATOM is between 7% and 20%. This rate will be lowered to either 0% or 20% if the proposal passes.

Rationale for Reducing Inflation

Proponents argue that the current minimum 7% inflation rate is unnecessary, even if 100% of tokens are staked. This doesn’t align with other blockchain models. With revenue from emerging consumer chains, stakers could be rewarded without minting new tokens.

Community Feedback on Proposal

Some are concerned 0% inflation will discourage staking. For example, similar protocols like DYDX and Kava have implemented 0% inflation but have low staking participation. However, their circumstances differ from Cosmos.

Next Steps

The proposal requires 40% of the outstanding supply to vote in favor before Jan 23rd. If passed, this would be a significant change to Cosmos’ tokenomics and staking incentives.

Tags: AtomBlockchainBusinessCosmoscrypto
Tweet1ShareShare2

DON'T MISS THESE! HOT OFF THE PRESS

UAE Sovereign Fund Boosts Bitcoin Exposure via $408M Investment in BlackRock ETF
Bitcoin

UAE Sovereign Fund Boosts Bitcoin Exposure via $408M Investment in BlackRock ETF

May 16, 2025
Russia’s Central Bank Declares Bitcoin as 2025’s Top Asset: Here is What You Need to Do
Crypto

Russia’s Central Bank Declares Bitcoin as 2025’s Top Asset: Here is What You Need to Do

May 16, 2025
Dogecoin Active Addresses Surge 990% Following Coinbase News: Is Now the Time to Buy?
Crypto

Dogecoin Active Addresses Surge 990% Following Coinbase News: Is Now the Time to Buy?

May 16, 2025
Analysts Predict XRP Price Could Hit $5 by November 2026 and Here is Why
Crypto

Analysts Predict XRP Price Could Hit $5 by November 2026 and Here is Why

May 16, 2025
Eric Trump Predicts Bitcoin Will Hit $1 Million Soon Amid Worldwide Accumulation Frenzy
Bitcoin

Eric Trump Predicts Bitcoin Will Hit $1 Million Soon Amid Worldwide Accumulation Frenzy

May 15, 2025
Russia and Saudi Arabia Show Growing Institutional Interest in Bitcoin: Is Time Running Out to Buy BTC?
Bitcoin

Russia and Saudi Arabia Show Growing Institutional Interest in Bitcoin: Is Time Running Out to Buy BTC?

May 15, 2025
Load More

Related News

Russia’s Central Bank Declares Bitcoin as 2025’s Top Asset: Here is What You Need to Do

Russia’s Central Bank Declares Bitcoin as 2025’s Top Asset: Here is What You Need to Do

May 16, 2025
Dogecoin Active Addresses Surge 990% Following Coinbase News: Is Now the Time to Buy?

Dogecoin Active Addresses Surge 990% Following Coinbase News: Is Now the Time to Buy?

May 16, 2025
Analysts Predict XRP Price Could Hit $5 by November 2026 and Here is Why

Analysts Predict XRP Price Could Hit $5 by November 2026 and Here is Why

May 16, 2025
Eric Trump Predicts Bitcoin Will Hit $1 Million Soon Amid Worldwide Accumulation Frenzy

Eric Trump Predicts Bitcoin Will Hit $1 Million Soon Amid Worldwide Accumulation Frenzy

May 15, 2025
Russia and Saudi Arabia Show Growing Institutional Interest in Bitcoin: Is Time Running Out to Buy BTC?

Russia and Saudi Arabia Show Growing Institutional Interest in Bitcoin: Is Time Running Out to Buy BTC?

May 15, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Newsletter
  • Advertise
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.