We appreciate and fully support the vision of transforming ATOM into Interchain money and security hub. However, we believe that these changes cannot be rushed, as doing so may potentially harm the Cosmos Hub rather than strengthen its position.
We have the following concerns:
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A recent proposal to change the inflation rate has been successfully implemented, altering the long-established dynamics of the hub. The Cosmos Hub has not yet fully adapted to this recent change.
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Validator income for most of the active set is already minimal and, in some cases, even negative, especially when validating consumer chains and relayers on top of the Hub. The income from the proposed inflation model may fall short of covering operational costs.
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Although the concept of AEZ shows promise, the current revenue generated from it is not substantial enough to justify a yet another dramatic shift in ATOM’s inflation dynamics.
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Should the proposal pass, in this current state of affairs, the only incentive for individuals to buy and stake ATOM tokens appears to be airdrops, which is neither guaranteed nor may meet the expectations of potential investors.
In conclusion, while a minimum 0% inflation rate could be a beneficial parameter in the long run for all parties involved, we believe that we have not reached the appropriate conditions for such a change at this time.