Cosmos (ATOM)

[pmbug]

Some news that will affect trading of Cosmos (ATOM) (currently ranked #23 at $3.44B market cap):

ATOM, the native coin of Cosmos Hub, is nursing moderate losses a day after Comos' founder Jae Kwon called community members to split the blockchain into two, with one observer hailing the potential hard fork as a bullish outcome for the investor community.

"Let's coordinate a split," Kwon said Sunday, following a decision by the Cosmos community to approve a proposal to reduce ATOM's inflation to 10% from 14%. Cosmos Hub is an intermediary among all independent blockchains created within the Cosmos network. ATOM powers the Cosmos ecosystem of blockchains programmed to scale and interoperate with each other.

The so-called proposal 848, approved with 41.1% support for the reduction from the participating voting power and 31.9% against it, said that ATOM's double-digit inflation rate represented overpayment by the Hub for security and disincentivized ATOM's use in decentralized finance. The approved change is projected to bring down Atom's annualized staking yield from approximately 19% to about 13.4%. Staking refers to locking coins in a blockchain in return for rewards.

Kwon, however, wasn't impressed and called for the hard fork.

According to X user "John Galt," an expert on Cosmos and head of strategy at Stride Zone, a potential hard fork could resolve years of community infighting and bode well for ATOM token holders.

"A fork would be very bullish. For years, political tension has impeded the development of Cosmos Hub. Most notably when the ATOM 2.0 proposal was vetoed in the fall of 2022," Galt said on X. "Without Jae's conservatism, Cosmos Hub could be more innovative."

Besides, Galt expects the hard fork to lead to the biggest airdrop for ATOM and could result in a massive increase in trading volume for both ATOM and ATOM1 tokens.

Airdrops involve blockchain-based projects and developers sending free tokens to the communities as part of a broader marketing initiative. When a chain splits, the native coin of the new blockchain is usually airdropped to token holders from the original blockchain.

"Jae is calling the new chain AtomOne (ATOM1). Most of the ATOM1 allocation would go to ATOM stakers pro-rata their amount. Unclear if liquid ATOM is included," Galt said.
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Cosmos Founder Calls for Chain Split; ATOM Down 3%

Cosmos Hub is an intermediary among all independent blockchains created within the Cosmos network. ATOM powers the Cosmos ecosystem of blockchains programmed to scale and interoperate with each other.

www.coindesk.com

The proposal to fork Cosmos likely has to be voted on. It may or may not happen.

I have some Cosmos staked and it is one of the better crypto staking experiences with a high APY. I can see how some whales (like I assume the founder is) would not like to lower that APY, but I have to believe that expanding economic use of the token would lead to greater demand and higher value so I think Kwon might be a bit short sighted here. Especially when you consider how the APY for staking other cryptos have all fallen off over time and a 10% APY is still much higher than any other crypto in the top 40 (ranked by market cap).

 

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Cosmos is the internet of blockchains, an ecosystem of apps and services that exchange digital assets and data using IBC (Inter-Blockchain Communication) protocol.

Cosmos envisions that interoperable blockchain technology make the world economy more resilient through decentralization, more accountable through transparency, and more efficient through programmable value. The future economy consists of over a million interconnected blockchains used to exchange digitized real-world assets and provably scarce digital assets.
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https://cosmos.network/learn/faq/what-is-cosmos

There are currently more than 249 Interchain apps and services in the Cosmos network, including Binance Chain, Terra, Crypto.org, and Cosmos Hub, with over $51 billion of digital assets under management.
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Cosmos: The Internet of Blockchains

Cosmos is an ever-expanding ecosystem of interoperable and sovereign blockchain apps and services, built for a decentralized future.

cosmos.network

I had forgotten what Cosmos (ATOM) USP was. They provide a platform for developers to make their own blockchains (or applications using blockchains) which can communicate (transact) with other blockchains (or applications using blockchains) on the Cosmos system.

 

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https://cointelegraph.com/news/cosmos-introduces-ibc-eureka-ethereum-compatibility-layer