Set the inflation rate back to 20% max

Conversation
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You know what they say, you’ll never do anything if you don’t try something.

We tried to “fix” $ATOM tokenomics, and accidentally broke the social standards set by a highly inflationary token. These social standards as I see it are;

  1. High $ATOM inflation was a necessary component to achieving the 66% bond rate, therefore solidifying the security of the network and the stability of ICS. With ICS being the network’s main product offering, we should encourage the bonded rate to increase back towards the 66%-67% level, while we aren’t far off at 60% (at the time of writing), I feel that encouraging the security of network is worth the increase of inflation.

  2. High inflation is a meme, and it was the best meme we had and people loved it. Sure, it hurt prices in the bear market, but frankly, who gives a crap about inflation in a bull market? Low float, absurdly high FDV tokens with much less utility than the Hub will 100x minimum this bull market. It’s clear that getting “economically responsible” was the wrong move here.

I’m glad we tried something here. Lowering inflation was worth a shot, but the $ATOM market cap is back at 2021 lows and nearing 2020 levels. Economic security is suffering by the stranglehold of low inflation, so what’s the hold up? Raise the inflation cap back to 20% and accept the Hub’s role as the governance driven memecoin of crypto.

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You can already predict the answers that you will get: ‘Thanks us actually to halve the max inflation from 20% to 10%, if it was not for us the ATOM price would now be much lower at $1-2’ :joy:

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Our saviors, so wise and knowledgeable.:pray:t2::place_of_worship:

You know what a wise man once told me, “never correct your mistakes, ESPECIALLY if it’s tokenomics”

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Nobody has stopped you from putting in a proposal. Do it.

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@Jcook_14

Thank you for bringing this topic back for discussion. Agreed to raising inflation back to 20% max. In addition, without straying too far from the original intent of your post, would be worth considering raising the tax on the Cosmos Hub community pool.

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ATOM is not a memecoin and increasing inflation would not be a good idea, it would cause a crazy surplus of coins and would not be beneficial in any way.

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When you are using something in production - for example silver, it is not bad when you have inflation! You need more of it as the economy expands

So, it is flawed to say that inflation is bad. Though, I agree - 20% might be a lot, but still it needs mathematical proof to call it a “surplus”

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