The Block28 minutes ago

Published on January 23, 2024 07:54 GMT+00:00edited on January 23, 2024 08:01 GMT+00:00

Cosmos community members voted against proposal 868, which sought to implement a major change in the network’s economic policy by reducing the minimum inflation parameter from 7% to 0% if over two-thirds of the ATOM supply was bonded on the network. However, this suggestion did not gain support.

Proposal 868 — introduced by Cosmos contributor Stakelab — intended to mitigate inflationary pressures on the ATOM token, especially in scenarios where a substantial portion of the coins are bonded.

Despite the potential benefits highlighted by the proposer, such as cutting down the inflation rate if total bonded tokens rise, concerns were raised about the implications of reducing the inflation rate to zero — particularly regarding the impact on the Hub's security.

The Hub acts as the central …