The DAO of Cosmos rejects Proposal 868
The DAO of Cosmos has voted against Proposal 868, which sought to reduce the minimum inflation of ATOM from 7% to 0%. Introduced by Cosmos contributor Stakelab, the proposal aimed to alleviate inflationary pressures on the ATOM token.
Despite the potential benefits, concerns were raised about the impact of reducing the inflation rate to zero on the security of the Hub.
Proposal 868 rejected by the DAO of Cosmos
The DAO of Cosmos Hub recently voted against Proposal 868, launched about two weeks ago. This proposal, introduced by the user ‘Stakelab,’ aimed to reduce the minimum inflation of ATOM from 7% to 0% in order to control inflationary pressures, particularly in scenarios where a large portion of tokens is bonded to the network.
This move was part of a broader discussion on the best way to manage token issuance and inflation within the Cosmos ecosystem.
Reducing the minimum inflation would have had significant implications not only for the value of ATOM but also for the overall economic dynamics of the network. In theory, lower inflation could promote token stability, but it also raises questions about the compensation and motivation of validators, who are essential for the security and performance of the network.
Results of the vote on Proposal 868
The voting results revealed a division within the community: 48.6% of validators voted against the proposal, 25% voted in favor, while the rest of the votes were split between ‘VETO’ and ‘Abstention’
This majority opposition reflects caution towards radical changes in the network’s monetary policy. Opponents, including key players such as Everstake and Cosmostation, have expressed their reservations, emphasizing the importance of maintaining a balance between inflation and security.
