+1.99%
+3.00%
+0.01%
+0.64%
+0.45%
+0.74%
Cosmos Labs is spearheading the project, emphasizing transparency and community involvement at every stage. The process is structured in five key steps: soliciting proposals, selecting research teams, gathering data, analyzing findings, and ultimately, putting the revised plan to a community vote.
This inclusive approach ensures that diverse perspectives – from validators and blockchain experts to everyday users – are considered. Anyone can contribute ideas, review research, and provide feedback, shaping the future of ATOM.
Early discussions have explored options such as rewarding long-term ATOM holders, dynamically adjusting inflation based on network activity, and unifying the Cosmos ecosystem more tightly around the ATOM token. Cosmos Labs is keen on maintaining a modular design, separating core token mechanisms from optional features to facilitate future upgrades.
The initial phase involves a proposal submission process, first privately to ensure fairness, then publicly for community scrutiny. The public feedback period is expected to last approximately three weeks.
Cosmos Labs will select two to four research teams based on their expertise and understanding of the Cosmos ecosystem. Public sessions will provide a forum for community members to directly engage with researchers, ensuring that both community needs and technical considerations are taken into account.
The research teams will analyze current ATOM emissions, usage patterns, and stakeholder perspectives. Interviews with validators, developers, and holders will provide valuable insights, informing simulation models of alternative tokenomic designs.
Draft reports will be shared publicly for feedback, and Cosmos Labs will synthesize the findings into a unified proposal. Once the community votes and approves the new system, it will be implemented, marking a pivotal moment in ATOM’s evolution.
This tokenomics overhaul arrives amidst other significant developments within the Cosmos ecosystem. Akash Network founder Greg Osuri recently announced plans to migrate the network from its Cosmos SDK chain to a new IBC-compatible chain.
Osuri cited security, community strength, liquidity, and growth as crucial factors in the decision. He also mentioned Solana as a potential candidate, while stressing the importance of maintaining interoperability with Cosmos.
Furthermore, Pocket Network partnered with staking service provider Kleomedes in September to decentralize infrastructure for Cosmos. This aims to reduce reliance on centralized cloud providers, which currently control a significant portion of the ecosystem.
For instance, Hetzner Online operates 27.51% of Cosmos nodes, while OVH SAS operates 10.78%, and Amazon and Google combined operate over 15%. This partnership is expected to enhance resilience and decentralization for both developers and users.
The push to revamp ATOM’s tokenomics underscores a commitment to long-term sustainability and real-world utility within the Cosmos network. By prioritizing network usage and community input over artificial scarcity, Cosmos aims to create a more robust and adaptable token model.
The community-driven approach ensures that the updated model reflects the actual dynamics of ATOM usage. This update comes at a time when Cosmos is facing market challenges, with ATOM currently trading at $2.46, a 25% decrease in the past month, according to CoinMarketCap.
The future of ATOM hinges on the success of this community-led initiative. A revitalized tokenomics model could not only boost ATOM’s value but also solidify Cosmos’s position as a leading interoperable blockchain ecosystem, ready to navigate the ever-evolving crypto landscape.
