As you may remember, in early January, developers in the Cosmos ecosystem took an important step and offered to reduce the inflation of ATOM, the native cryptocurrency of the Cosmos network, to 0%.
This proposal would reduce the ATOM inflation rate, which fluctuates between 7% and 20%, to anywhere between 0% and 20%.
However, voting on the proposal ended today and the proposal was rejected.
Although the potential benefits of reducing the inflation rate were noted by the bidder, concerns were raised by those who voted against it about the consequences of reducing the inflation rate to zero, particularly the impact on the security of the Hub.
At this point, 48.6% of validators voted against the proposal, 25% voted in favor, and 25.9% abstained.
Those with significant voting power but who voted against the proposal include companies such as Everstake, Cosmostation, Chorus One, Allnodes, Stake.fish, Swish Staking and Forbole; It was stated that the validators supporting the offer include companies such as Game, Informal, Stakecito, P2P, Polkachu, Pryzm, IrisNet, Leap.
For the proposal to be approved, a quorum of 40% was required to vote in favor.
In addition, if the proposal was approved, the inflation rate could drop to zero and a rally in the price of ATOM was expected.
Cosmos (ATOM) continues to trade at $8.9 with a 5% decline.
*This is not investment advice.
