According to the Stellar Development Foundation’s (SDF) blog post published on Sept. 30, developers are keen to discard the inflation tool, which they say now offers little functionality to network participants.
Cryptocurrency protocol Stellar (XLM) announced that it intends to remove its inflation feature in an upcoming upgrade.
Users to vote on inflation removal
Per the blog post, the protocol’s new incarnation, version 12, should no longer include it, with a vote aiming to achieve consensus. The post reads:
“After listening to what everyone had to say and weighing the pros and cons, here’s what the SDF is asking validators to consider: we think it’s a good idea to disable the current inflation mechanism. We’ve implemented a change in version 12 of Stellar core that would do just that, and we encourage validators to vote to accept it.”
Network validators will have until Oct. 28 to install the new version 12, at which point developers will analyze the results.
Inflation funds fail to reach their intended goal
Stellar originally included the inflation tool in order for projects to gain extra funds from community payouts. Since 2014, however, the situation changed and the original plan saw no real-world success.
The SDF adds:
“Five years and several million accounts later, it’s clear that inflation doesn’t serve this purpose. Rather than sending inflation to projects building on Stellar, the majority of users join pools in order to claim that inflation for themselves – if they set their inflation destination at all.”
Should the proposal to remove inflation fail, version 13 of the Stellar protocol – being itself a subject of a community-wide vote – will reinclude it.
XLM’s price appeared ambivalent to the concept at press time, gaining modestly as part of a wider cryptocurrency resurgence on Tuesday.
As Cointelegraph reported on Sept. 9, Stellar confirmed a $120 million airdrop in conjunction with encrypted messenger Keybase.
Crypto Investors KR1 Thank Cosmos Network for $5.6M Profit in H1 2019
European digital asset investment firm KR1 posted a $5.6 million profit for the half year ending on June 30, 2019, mainly due to the launch of Cosmos network.
High returns from bull market in H1 2019
In an interim report published on Bloomberg on Sept. 30, KR1 CEO George McDonaugh emphasized that the firm’s portfolio surged in value in H1 2019 as Bitcoin bounced off a low of $3,200 in late 2018 to over $13,000 in mid-2019.
According to the report, the company’s profit was primarily driven by the successful launch of the Cosmos network, considered to be one of KR1’s most successful investments so far.
Revenues from staking ATOM
The company’s strategy to stake their Cosmos token (ATOM) has produced a significant monthly staking yield, reportedly recognized in revenue of £116,788 ($143,621) over the three-and-a-half-month period following Cosmos’ launch on March 14.
As previously reported, Cosmos network claims to function as “the Internet of Blockchains”, working as a mediator between different blockchain networks. Cosmos reportedly became the first in a series of proof-of-stake (PoS) chains developed by California-based startup Tendermint.
In the announcement, KR1’s CEO expressed confidence about PoS blockchains including blockchain interoperability protocol Polkadot and Dfinity, noting that such projects will generate healthy cashflows. As such, KR1 is reportedly getting involved with Commonwealth Labs, a startup building a system for anyone to participate in the governance of decentralized networks, and Edgeware, which are reportedly building on Polkadot.
On Sept. 26, major crypto exchange Binance launched a dedicated staking platform, allowing users to earn staking rewards by depositing their token holdings.