Cosmos developers, known for their inter-blockchain communications (IBC) protocol, have proposed a dramatic change in the ATOM token's inflation rate. As per StakeLab's Jan. 9 proposal, the goal is to lower ATOM's minimum inflation from its current range of 7% to 20% down to 0%. This proposal, requiring approval from 40% of ATOM's outstanding supply, aims to align with successful blockchain models and address concerns about the current inflation setup. StakeLab suggests that protocol revenue from emerging Cosmos chains could be redistributed to ATOM stakers, replacing the need for high token emission rates. However, concerns are emerging within the community. Some fear this could disincentivize current stakers and impact the ecosystem's tokenomics, especially considering that over 60% of ATOM is currently staked. Notably, the Cosmos community had previously voted on Nov. 26, 2023, to reduce annual ATOM staking yields from 19% to 13.4%.
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