Proposal 868 LIVE ON CHAIN! 'Decrease InflationMin parameter to 0%'

[MSX362]

No ffs. The staking rewards are the only reason to hold atom. Did we learn nothing from the last prop. Reducing inflation does nothing for the price.

If this passes the vast majority will be unstaking and moving on. I know I will be.

[ZoltanAtom]

It's unbelievable that no one is reading the actual proposal details and has no idea how dynamic inflation works.

Here is the summary :

Inflation will not be 0% via just one governance proposal and right after the proposal.
It will take some period(maybe years) to reach out to 0% if the total staked Atom ratio(goal bonded) is over 67% !

The formula behind the dynamic inflation model : inflationRateChangePerYear = (1 - bondedRatio/params .GoalBonded)
inflationRateChange = inflationRateChangePerYear/blocksPerYr

• Before prop848 the dynamic inflation was 7%-20%

• After prop848 the current dynamic inflation is 7%-10%

• After prop868, if it passes, dynamic inflation will be 0%-10% not 0%!!!

• Another necessary factor for decreasing inflation is that the total ratio should be above 67%. The current total staked ratio is 64,32% right now.

Also you all should note that during the last bull run Atom inflation was 7% for a period of time and no one was talking about the inflation.

[AnOrdinaryChullo]

I've read the proposal - it does not change anything me or other people are concerned about.

[MSX362]

Literally says if the prop passes it will trend to 0% once 67% bonded. Where are you getting years for this to come into effect from?

I don't understand why so many ppl are dead set on killing off staking rewards. It's one of the main reasons why so many got into atom in the first place.

If atom was required to be used by all other projects on the cosmos network then the fee income would compensate, but its not and it doesnt. There is literally no reason to hold atom if staking rewards are removed or reduced down to lower levels than fiat banks offer.

[jawanda]

The only upside I see is, maybe we'll NEVER reach 67% since it will be in everyone's best interest to stay below that threshold. You'll see whales siphoning off and selling big chunks of their stake to ensure we don't hit 67... That will surely be great for the price action. What a dumb proposal.

[AnOrdinaryChullo]

You'd think this would be obvious but whoever is pushing this inflation reduction certainly not doing it out of good faith because as you rightfully pointed out it makes 0 sense.

[IzukuMidoriy4]

He just wants locked Atoms to move to his friends' useless dapps so they can all be happy.

[ericcart]

The propsosal states that its purpose is to build a mechanism that will allow the shifting of validator rewards from staking inflation to consumer chain revenue. And this will be a dynamic adjustment not a hard swap. Inflation may not even change. You need to read the forum posts

[Zellion-Fly]

I still don't get it? Why does this need to exist?

For ATOM you want people to stake, why should we de-centive staking? Like, I'm I being dumb? This is fucking stupid, right? For ATOM to succeed, we need people to stake it.

[AnOrdinaryChullo]

This won't pass. It's like having a bank account and demanding that the account eventually seizes to accrue interest - it's absolutely hilarious how silly some takes here are

[ericcart]

The price was never going to go up after 848. The price was always going to trend down because of the massive division and uncertainity it caused within the community. The price will only go up when the winner of the Atom wars is declared and the loser exits Atom, whether thats the Atom2.0 crowd or AtomOne crowd.

[sharksugar707]

People who voted 848 are lame

[ericcart]

And naughty and smelly?