What Cosmos’ proposal #848 means for ATOM
Journalist
Posted:
- Cosmos’ proposal #848 passed with over 41% votes.
- ATOM has increased by close to 10% in the last 24 hours.
On the 11th of November, Cosmos [ATOM] presented its proposal #848 to the community for voting, and it was expected to be concluded on the 25th of November. According to Atomscan, a platform tracking the votes, there was a turnout of 72.65%.
The breakdown of votes revealed that the proposal passed with 41.14%, while 31.87% voted against it. Additionally, over 20% abstained, and over 6% attempted to veto the proposal. With over 41% supporting the proposal, it successfully reached a quorum and has been approved.
What the proposal #848 is all about
Cosmos’ proposal #848 stands out as one of the most contentious tenders, as reflected in the voting outcomes. Proposal #848 seeks to decrease the maximum inflation parameter from 20% to 10%.
When implemented, this adjustment would reduce ATOM’s inflation rate from around 14% to 10%. Consequently, the staking Annual Percentage Rate (APR) would also be affected, dropping from around 19% to about 13.4%.
Additionally, the proposal addressed the current dynamic inflation model, which fluctuated between a 7% floor and a 20% ceiling based on the bonded or staked ratio.
The existing high staking APY, favored by validators and significant stakers due to the current inflation rate, is less beneficial for ATOM investors and long-term holders.
ATOM gets a lift
Analysis of ATOM’s daily timeframe chart showed a positive response to the latest development. By the close of trading on the 25th of November, its value had increased by more than 6%, reaching around $9.4.
As of this writing, an additional 3% increase could be observed, taking ATOM to $9.8.
Source: TradingView
Furthermore, the long moving average (blue line) was acting as the support level at press time, situated around $8.4 and $8.2. AMBCrypto’s examination of prices revealed that the value has rebounded from this range on two occasions before resuming its upward trajectory.
How much are 1,10,100 ATOMs worth today?
Additionally, there has been a notable increase in ATOM’s trading volume, surpassing levels observed in the preceding days. AMBCrypto’s analysis of Santiment’s volume metric also showed that the highest volume recorded in recent days was around $172 million.
While there were occasional spikes before, they had generally decreased. At the time of this writing, the trading volume had risen to around $189 million, signaling heightened activity in the market.
Source: Santiment
