ATOM as Sound Money

Inflation Recommendations Research

ATOM Sound money. The results of research that Cosmos hub paid for.... If this takes effect it will gradually, positively affect the price and status of ATOM

ATOM Inflation Recommendations Research

The original inflation schedule of the Cosmos Hub was designed in a pre-liquid staking token environment when there was more of a competition between DeFi activities vs security via staking. The Blockwork’s research outlined that the dynamic nature of inflation tied to bonded ratios can have a dramatic impact on long term supply issuance - this supply issuance entropy introduces additional unknowns to long term tokenholders & stakers. The research advocated for lowering the target minimum inflation rate to 3% using a 0.50% decrease in inflation year over year until the 3% target is hit, at which point there would be a long term slow transition to 1.5% using a 0.25% decrease in inflation year over year. Key to all of this is that inflation would no longer be a function of the bonded ratio. The research also recommends that the Cosmos Hub ossify its issuance schedule in a way that acknowledges the Cosmos Hub’s desire to solidify its positioning as sound Interchain Capital.