If Bitcoin halvings, halving of miners’ rewards, take place every four years, those of Cosmos take place every two years. Currently, this operation also aims to reduction of the inflation rate of its native crypto ATOM is the subject of a voting proposal to investors. Seeing the latest news, individual investors and crypto whales do not share the same opinion.
Halving of the ATOM, a point of contention?
After the halving of Litecoin (LTC) comes that of Cosmos, issuer of the ATOM cryptocurrency. Normally, in the event of a favorable opinion from the community, this anti-inflation operation will be held in March 2024. Just a month before the bitcoin halving to which analysts like Morgan Stanley attributed the start of a BTC bull run.
“ The Cosmos community has posted a vote on the ATOM Halving Proposal, proposing to reduce ATOM’s maximum inflation setting from 20% to 10%, which would drop the current inflation rate d ‘approximately 14% to 10%, and the APR from approximately 19% to approximately 13.4%. However, the proposal is currently in the lead with 41.4% voting against, with voting ending on November 26. »
According to Odaily, Proposition No. 848 aimed at reducing the ATOM inflation rate is dividing ATOM investors. Because apparently, whales and individual investors are arguing about their respective interests.
However, the said proposal aims to revision of the inflation rate of Cosmos’ native crypto up to 10%. Currently, this rate is set at 19%. However, in the event of validation, there will be less selling pressure for these traders.
Why did Zaki, the lead developer of Cosmos, propose this revision? In fact, it was based on a Blockworks Research study highlighting exorbitant fees for blockchain security. Under such conditions, the adoption of a fixed supply plan is essential. Knowing that it is difficult for the 180 validation nodes of Cosmos to reach the break-even point without this reduction in the inflation rate to 10%. Or to make profits solely through commissions.
Towards a victory for “NO”?
By taking a look at the voting platform, we learned thatthere are still 9 days left to approve (or not) proposal No. 848. We will also not fail to note that the counter part continues to lead with a rate of 39.5% at the time of writing this article.
What about the ATOM price? A priori, this so-called disagreement has not yet impacted the price of Cosmos Hub’s native crypto. Currently, it is trading at a price of $9.79 per coin on CoinGeckoan increase of 2% over 24 hours and 50% over one month.
As for the benefits of ATOM halving, Binance listed a few, just to mention interoperability, scalability, etc. Would it grant the network the power to surpass Ethereum?
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