Higher rewards often get dumped or rotated into BTC/ETH, adding sell pressure. It also heavily dilutes people who stay liquid, forcing them to stake just to keep up.
Low inflation doesn’t penalize holders. It actually respects both sides: people who want their ATOM liquid and long-term believers in the project. You are not forced to stake just to avoid dilution, and you can hold or trade without getting wrecked by high inflation.
Today, with ATOM at $2.5, 10% inflation and a 5% commission, we are looking at roughly $6M per year in commissions paid to validators that are automatically sold. I’m not even talking about all stakers.
At the same time, there is nothing really concrete coming from the team : just a 180° turn and a lot of promises. I’m not bashing them, I’m just looking at the facts, and I hope they will succeed. Just I think for now, it’s time to cut costs