Staking is the core importance of ATOM. The safety of Cosmos network is closely related to the ratio of ATOM is staked which means the higher the ratio is, the safer the Cosmos internet is. To ensure the safety of Cosmos network, a certain amount of ATOM inflation is adopted in Cosmos network. The inflation ratio is from 7% to 20%: if there is few ATOM is staked, then the inflation ratio is up to 20%. Attention is needed that when the staked ATOM takes 2/3 of the whole ATOM token, the inflation ratio will be stabilized to 7%.

If users don’t stake their ATOM to validators, the value of ATOM will be diluted. Taking Bob and Tom as examples: if Tom deposit $100 to the bank, 10 years later he will get $200; while Bob keep his $100 with him, 10 years later his $100 remains the same which means Bob’s money is diluted. For ATOM users, if they don’t stake ATOM to validator, their ATOM is diluted also.