27 Nov 2023 Jane Whitmoore
Cosmos Co-founder To Create An ATOM Fork; Disagrees With Governing Council
Jae Kwon, the founder of Cosmos, has voiced his disapproval of the ATOM output reduction vote, which was successful in spite of his objections. Kwon has responded by revealing intentions to split Cosmoshub4 and introduce AtomOne, a brand-new network. With a goal of reaching further decentralization, the future network will function independently and have its own development team and governance plan.
The Cosmos Hub's governing council has approved a proposal to lower the maximum inflation rate of Cosmos (ATOM), the hub's native token, from 14% to 10%. Concerns about the high pace of inflation and its possible effects on prices and security have led to this decision.
Furthermore, the proposed modification would result in a reduction of ATOM's annualized staking yield from nearly 19% to roughly 13.4%. Within the Cosmos network, ATOM coins are essential for staking, governance, and paying transaction fees. The vote on the plan was tight, with 41.1% voting in favor and 38.5% voting against.
The shift, according to the proposal's detractors, would have a negative impact on tiny validators and be "an abrupt, short-sighted, and ill-researched idea" that could upset the retail industry as well as companies that develop, trade, and validate ATOM.
Notably, an update to the Cosmos Hub recently added a liquid staking module, which lets users unstake ATOM tokens without having to wait the usual 21-day unbonding period. By allowing the use of staked tokens in the Cosmos decentralized finance ecosystem without sacrificing staking incentives, this improvement gives ATOM holders even more choice.
As previously mentioned, Jae Kwon intends to perform a hard fork on the Cosmos Hub blockchain, dubbing the resulting version CosmosOne.
Cosmos founder Jae Kwon recently disclosed plans to combine $ATOM with $ATMO/$ATOM1 in an effort to prevent mass sales and a possible collapse of the market. Kwon called attention to the README's shortcomings and extended an invitation to tokenomics specialists to offer suggestions.
The idea is to fork "cosmoshub4", keeping the existing software but going beyond Gaia's degree of decentralization by adopting an autonomous plan with decentralized development teams. Everyone who cast a ballot against the initiative (NO voters) is welcome to take part.
Kwon clarified any misunderstandings surrounding the impact of NO/NWV voters inside and beyond the hub by highlighting the presence of a community that is in line with sensible values and objectives. The plan's goal is to illustrate antifragility—the ability of a system to withstand attempts to govern it. The claim that even a minority with sound reasoning might self-organize and oppose majority rule emphasized the decentralized character of blockchain networks.
Blockchain Development Hard Fork Cosmos ATOM
