Recently, the governing body of the Cosmos Hub approved a significant change to the blockchain’s economic model. The community voted to reduce the maximum inflation rate of ATOM, the native token of Cosmos Hub, from its current rate of around 14% to a new cap of 10%. This change is expected to reduce the Staking Annual Percentage Rate (APR) from approximately 19% to about 13.4%.
ATOM plays a central role in the Cosmos Hub ecosystem, being used for staking, governance, and transaction fees. The proposal to adjust the inflation rate garnered mixed reactions, with 41.1% of participants voting in favor and 38.5% voting against. The decision was on a knife-edge until the final moments of the voting period, when a late surge of votes and some reversals from validators tipped the balance in favor of the proposal.
Proponents of the change argued that the existing higher inflation rate led to the Cosmos Hub overspending on network security….
