HomeNewsCosmos Shakeup: Jae Kwon to Fork Cosmoshub4, Unveils AtomOne for Freedom

Cosmos Shakeup: Jae Kwon to Fork Cosmoshub4, Unveils AtomOne for Freedom

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  • Cosmos community approves a reduction in ATOM inflation rate from 14% to 10% to enhance security and profitability.
  • Despite a narrow vote, this change marks the highest-ever turnout in the Cosmos ecosystem, with potential benefits and concerns regarding smaller validators and ecosystem centralization.

In the world of blockchain, a recent tweet by ntechristus, caught our attention:

Inmerion The Cosmos Hub community has spoken, approving a proposal to reduce the inflation rate of Cosmos (ATOM) from 14% to 10%. This move aims to bolster security, encourage long-term profitability, and stimulate growth in ATOM’s value.

High Voter Turnout Marks Approval With 41.1% of the community supporting the proposal, it narrowly passed, garnering 38.5% of votes against it. This decision marks a historic turnout in the Cosmos ecosystem and is expected to reduce ATOM’s annualized staking yield from 19% to 13.4%.

Addressing Security Concerns The proposal argues that Cosmos Hub’s high inflation rate has resulted in excessive security-related expenses. By scaling back inflation to 10%, validators can maintain profitability. However, concerns have arisen regarding the potential impact on smaller validators and the centralization of the ecosystem.

The Cosmos Hub: Nucleus of the Cosmos Network ATOM plays a pivotal role in staking, governance, and transaction fees within the Cosmos network. The community anticipates increased profitability and long-term appreciation of ATOM’s value.

Cosmos Network‘s Ongoing Evolution A recent white paper outlines ambitious plans for the Cosmos Hub, positioning it as the epicenter of interchain security. This means that other chains can rely on the Hub for their network security. The white paper also proposes changes to ATOM’s utility and issuance schedule, reinforcing its role as an index of the broader Cosmos family of blockchains.

Furthermore, the Cosmos Hub introduced a liquid staking module, eliminating the previous 21-day unbonding period associated with unstaking ATOM funds. This enhancement allows ATOM holders to seamlessly participate in the decentralized finance ecosystem without sacrificing staking yields. Users can also cancel ongoing unbonding processes, enabling ATOM to return to regular staking and engage in the liquidity staking module.

In Conclusion, the Cosmos community’s decision to reduce ATOM’s inflation rate is a significant step toward enhancing security and profitability. As this proposal takes effect, the community eagerly awaits positive outcomes for both stakers and the long-term value of ATOM.

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John Kiguru
John Kiguru
John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@ethnews.com Phone: +49 160 92211628