Cosmos Hub Rejects Proposal to Reduce ATOM's Minimum Inflation to Zero


The Cosmos Hub community has voted against Proposal 868, a widely discussed initiative that aimed to significantly alter the network's economic policy by reducing the minimum inflation rate of ATOM from 7% to 0% under specific conditions.


Proposal 868, introduced by Cosmos contributor Stakelab, sought to address inflationary concerns surrounding the ATOM token by proposing a reduction in the minimum inflation parameter to zero when over two-thirds of the total ATOM supply was bonded on the network. Despite potential benefits such as lowering the inflation rate with an increase in bonded tokens, the proposal did not garner sufficient support.


Opponents of the proposal expressed reservations about the implications of reducing the inflation rate to zero, particularly in terms of its potential impact on the security of the Cosmos Hub. The Hub plays a central role in the Cosmos ecosystem, facilitating communication and interoperability among various blockchains built on Cosmos, with ATOM serving as the native token for transactions, security, and governance.

Voting Outcome

Validators voted against the proposal, with 48.6% opposing, 25% in support, and 25.9% abstaining. Key validators opposing the proposal included Everstake, Cosmostation, Chorus One, Allnodes,, Swish Staking, Forbole, Provalidator, Keplr, and others. Those in support included Game, Informal, Stakecito, P2P, Polkachu, Pryzm, IrisNet, Leap, and more.


This proposal follows the acceptance of Proposal 848, which imposed a cap on the maximum inflation rate at 10%, down from the previous 20%, as a measure to regulate token emissions on Cosmos. Validators play a crucial role in both block production and voting on Cosmos, with voters having the option to delegate their stake to validators.

Ongoing Discussion

The inflation rate on Cosmos Hub has been a subject of extensive discussion over the past year, with contributors advocating for minimal inflation to optimize token emissions. It remains a topic of consideration within the Cosmos community.

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