This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The Cosmos Hub has approved a proposal to reduce the maximum inflation rate of its native cryptocurrency, ATOM. The proposal aims to decrease the inflation parameter from 20% to 10%, which will have a tangible impact on ATOM’s current inflation rate of around 14%. This adjustment will also lower the Annual Percentage Rate (APR) for staking from approximately 19% to around 13.4%. The rationale behind the proposal is to fine-tune the inflation schedule for ATOM and address concerns about its sustainability and predictability. The adjustment is expected to enhance the value proposition of ATOM as a security provider for consumer chains within the Cosmos network. It also aims to address concerns about overpaying for security and the constant sell pressure affecting ATOM’s price performance. Validator costs are also considered, with the proposal outlining the potential financial implications for validators. This is the first of three proposed adjustments, with subsequent proposals focusing on reducing the minimum inflation parameter and increasing the inflation change parameter. These proposals collectively aim to create a more sustainable and secure Cosmos network.