Cryptocurrency Q&A Is Cosmos atom deflationary?

Is Cosmos atom deflationary?

SolitudeSerenade SolitudeSerenade Tue Feb 11 2025 | 6 answers 1375
Users are inquiring whether the Cosmos ATOM token is deflationary, which typically refers to a decrease in the general price level of goods and services, or in the context of cryptocurrencies, a reduction in the circulating supply of the token over time. Is Cosmos atom deflationary?

6 answers

CherryBlossom CherryBlossom Thu Feb 13 2025
Cosmos (ATOM) possesses mechanisms that exhibit both inflationary and deflationary characteristics.

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Eleonora Eleonora Thu Feb 13 2025
These mechanisms are influenced by various factors, including staking rewards, community proposals, and token burns.

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DigitalDynasty DigitalDynasty Thu Feb 13 2025
In terms of inflationary aspects, Cosmos operates on a Proof of Stake (PoS) model.

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HanRiverWave HanRiverWave Thu Feb 13 2025
Within this model, new ATOM tokens are continually created as staking rewards.

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GwanghwamunPride GwanghwamunPride Wed Feb 12 2025
Staking rewards are distributed to validators who contribute to the network's security and stability.

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