Cosmos community approves proposal to reduce ATOM inflation by half

The Cosmos community approved the proposal to reduce the token’s inflation from 20% to 10%. 41.1% of the voters supported the transition, while 31.9% opposed it. Meanwhile, reducing inflation is positive for the crypto as it ensures improved security and lucrative staking yields.

Cosmos’s #848 proposal will reduce yearly interest rates for staking. That would boost ATOM price growth and ensure solid long-term returns for investors and traders.

Cosmos to reduce ATOM inflation by a half

The Cosmos Hub community has passed a proposal to trim ATOM’s inflation rate from 20% to 10% and heighten the blockchain’s security. Meanwhile, the decision saw the highest turnout (72.7%) in the platform’s history.

Cosmos introduced the proposal after a report from research company Blockworks revealed that ATOM was overpaying for platform security. The crypto project suggested a switch to a set supply schedule to bolster safety.

ATOM price

Cosmos traded with an upside stance at press time. It gained 7.63% in the past 24 hours to $9.67. Further, ATOM investors have seen their portfolios increase by over 36% within the last 30 days.

Meanwhile, the approval of proposal #848 means Cosmos enthusiasts can expect increased returns, which is bullish for ATOM's price in the longer term.