The developers of the Cosmos Hub blockchain, which is part of the Cosmos Network, intend to carry out halving and reduce the inflation rate of the Cosmos cryptocurrency (ATOM). On November 26, voting for halving in the Cosmos Hub network ended. 41.1% of members of the crypto community supported this initiative, and 31.9% were against it. As a result, programmers will release an update that will “halve the reward” for adding blocks.
After the update is implemented, the Cosmos staking yield will drop from 19% to 13.4%. Despite the decrease in revenue, almost all 180 validators will break even or even continue to earn profit. In addition, in order to cover their expenses, they will be able to increase the size of the commission for processing transactions. The magnitude of the reward for adding blocks depends on the number of blocked Cosmos and amounts to up to 20% of staking coins. Thus, validators who store 100,000 ATOM receive up to 20,000 coins within a year. The Cosmos Hub developers believe that they are overpaying the network nodes and are accelerating the inflation rate too much, so experts proposed halving the reward and achieved the support of many users Blockchain tree.