- The Cosmos Hub community has passed the ATOM Production Reduction proposal with 41.1% support.
- The maximum inflation of the token will be slashed in half, to 10%.
- ATOM price is up nearly 6% on the day, yielding 40% monthly gains for holders.
A Cosmos proposal to reduce ATOM’s inflation rate and improve its security was passed by the Cosmos Hub community. The proposal will reduce the annual interest rate for stakers, in exchange for long term profitability and price growth in ATOM.
Also read: Ethereum whale activity could pave way for ETH price to hit new yearly highs
Cosmos community agrees to slash ATOM inflation in half
A proposal to reduce ATOM’s inflation rate from 14% to 10% and slash staking yield from 19% to 13.4%, received a go-ahead from the community of voters. The support rate for the proposal os 41.1% and opposition was 31.9%. The community members agreed to slashing inflation for the token to ensure better staking incentives and improve Cosmos network’s security.
The proposal was inspired by research firm Blockworks’ report that ATOM is overpaying for security. Transitioning to a set supply schedule was suggested to improve security and nearly all validators were at break-even profitability, they agreed at a maximum of 10% inflation.
Validators were given the option of increasing their commission rate for covering operational expenses.
Cosmos proposal to reduce ATOM inflation rate
With approval on the ATOM halving proposal, the community can now expect higher profitability and likely appreciation of the token’s price in the long term. At the time of writing, ATOM price is $9.9220 on Binance. The token is up 6% on the day and 7.50% on the week.
In the past month, ATOM holders observed double-digit gains, nearly 40%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto fraud soars as high-risk addresses on Ethereum, TRON networks receive $278 billion
The cryptocurrency industry is growing across multiple facets, including tokenized real-world assets, futures and spot ETFs, stablecoins, Artificial Intelligence (AI), and its convergence with blockchain technology, as well as the dynamic decentralized finance (DeFi) sector.
Bitcoin eyes $100,000 amid Arizona Reserve plans, corporate demand, ETF inflows
Bitcoin price is stabilizing around $95,000 at the time of writing on Tuesday, and a breakout suggests a rally toward $100,000. The institutional and corporate demand supports a bullish thesis, as US spot ETFs recorded an inflow of $591.29 million on Monday, continuing the trend since April 17.
Meme coins to watch as Bitcoin price steadies
Bitcoin price hovers around $95,000, supported by continued spot BTC ETFs’ inflows. Trump Official is a key meme coin to watch ahead of a stakeholder dinner to be attended by President Donald Trump. Dogwifhat price is up 47% in April and looks set to post its first positive monthly returns this year.
Cardano Lace Wallet integrates Bitcoin, boosting cross-chain capabilities
Cardano co-founder Charles Hoskinson announced Monday that Bitcoin is integrated into the Lace Wallet, expanding Cardano’s ecosystem and cross-chain capabilities. This integration enables users to manage BTC alongside Cardano assets, providing support for multichain functionality.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.