In a significant vote, the Cosmos community signaled a collective decision to maintain the current minimum inflation rate for the network’s token supply, opposing Proposal 868. The proposal, introduced by StakeLabs in November, aimed to reduce the minimum inflation rate from 7% to 0%. However, with 48.6% of the community voting against the proposal, the status quo was preserved.
StakeLabs had presented Proposal 868 expressing concerns about the established 7% minimum inflation rate, highlighting it as a deviation from practices in competitive blockchains. The proposal aimed to address this by reducing the minimum inflation rate to zero. The core argument highlighted by StakeLabs was a theoretical scenario where even if 100% of the token supply was staked, the network would still produce an additional 7% of tokens annually, raising concerns about industry norm compliance.
The voting process for Proposal 868, which started on January 9 and ended on January 23, revealed diverse reactions from the community. Of the total votes cast, 48.6% opposed the proposal, while 25.1% supported it, and 25.9% abstained. Validators showed a 52.67% majority in opposition.
An interesting aspect of the vote was the participation dynamics of the validators. Out of 180 validators, only 131 actively voted, leaving approximately 27% who neither opposed nor abstained. This deviation from the usual consensus outcomes in proposal votes indicated differing opinions within the Cosmos community regarding the proposal to reduce the inflation rate to zero.
Although Proposal 868 was rejected, the mixed sentiments expressed in the voting results suggest the possibility of similar initiatives in the future. The controversial nature of the proposal and the lack of unanimous decision open pathways for ongoing dialogue within the Cosmos community. Consequently, the rejection of Proposal 868 reflects the community’s preference to maintain the current minimum inflation rate for the Cosmos token supply.