The Cosmos community has approved a proposal to reduce the annual inflation rate of the native token ATOM from 14% to 10%. The proposal, which was proposed to reduce overpayment by the Cosmos Hub for security, passed with 41.1% of votes in favor and 38.5% votes against. Despite the shortening profit margins for validators, the proposal was able to pass in part due to final surge of votes and some validators changing their minds. Zero Knowledge Validator, which cast the largest vote in favor of the proposal, argued that double digit inflation was unnecessary and could weaken Atom's long-term price. Of the votes cast against the proposal, the largest came from AllNodes, who argued that the proposal was an unwise and ill-researched idea that could hurt small validators, businesses and traders operating in Atom's Economic Zone.



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