1. Core Content of the Proposal
It is proposed to permanently lock the maximum total supply of ATOM tokens to 800,000,000 through on-chain governance, discontinue continuous inflationary issuance, and establish a hard cap on the total token supply.
2. Objectives of the Proposal
- Stabilize the token economic model: Eliminate market concerns over long-term high inflation of ATOM and reduce selling pressure expectations.
- Enhance asset value consensus: Clarify scarcity, strengthen confidence among institutions and long-term holders, and improve valuation logic.
- Optimize ecological incentive efficiency: Convert inflationary rewards into more controllable distributions from the community treasury and ecological incentive funds to avoid meaningless issuance.
3. Implementation Method
- Initiate the proposal in the form of on-chain governance for Cosmos Hub and specify the parameters for the maximum supply cap.
- Set an effective block height; keep the proportions of existing circulation, team allocation, and ecological distribution unchanged, only capping the total supply.
- Original inflationary rewards can be issued from the treasury or special funds instead of creating new supply.
4. Expected Effects
- Significantly reduce inflationary pressure and improve the supply-demand structure of ATOM.
- Strengthen the value-capturing role of the Hub as the core of the Cosmos ecosystem.
- Improve the long-term holding value of the token and attract capital and ecological projects.
One of the purposes of this proposal is to end the team’s complacency, force a shift to a sustainable value-capturing system, and end reliance on inflation for passive gains.