Can ATOM 2.0 Solve the Cosmos Tokenomics Issue?
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Recently, big names in crypto have announced their migration to the Cosmos appchain ecosystem, including DYDX and Delphi Digital (read our notes on their move to Cosmos).
The Cosmos Hub token, ATOM, has long been criticized for not accruing value: the team aims to change this with the newly announced ATOM 2.0
In the last event of Cosmoverse 2022, moderator Cryptocito welcomed a host of builders in the cosmos ecosystem:
● Tyler Schmidt: Cofounder of Strangelove Ventures
● Sam Hart: Cosmos contributor and Interchain Strategy Lead
● Jelena Djuric: Marketing at Informal Systems
● Zaki Manian: Cofounder of Sommelier
● Ethan Buchman: Cofounder of Cosmos
Read our notes below to find out what you can expect from ATOM 2.0
Evolution of Cosmos
Zaki:
● Cosmoverse 2022 has represented how far Cosmos has come, as the protocol always prioritized tech over marketing.
● Team wants community-driven marketing.
Ethan:
● Goal has been to move the internet forward, not compete with other blockchains.
● Moving from the initiation phase to integration phase.
● Released new Cosmos whitepaper focusing on the Cosmos hub.
Sam:
● Sam helped compile notes and surveys from important builders within the Cosmos ecosystem into the new whitepaper.
● Wanted to make Cosmos cool to the rest of crypto.
● 1st Cosmos whitepaper was theoretical and focused on building a community, 2nd whitepaper focuses on how to help foster the community of builders that now exists.
Tyler:
● Began as a Cosmos validator.
● Built a lab with the intention of building out the future of the ecosystem.
Tokenomics Change
Zaki:
● Liquid staking helps Cosmos transition to linear issuance, rather than the current exponential issuance.
● Predicts 80-90% token staking range in the future.
● Transition to Atom 2.0 should be taking place in coming weeks.
Sam:
● Goal is for native ATOM token to be a reserve asset.
● Cosmos hub will generate revenues from interchain security.
● Large portion of new ATOM issuance will be going towards builders elected by token holders to help develop ecosystem.
Cosmos Interchain Security
Jelena:
● Cosmos Hub will be able to help secure new IBC chains.
● These chains will use ATOM for staking, and can also use the token for governance if they wish.
There will be two type of chains:
Custom consumer chains: similar to current Cosmos SDK chains, will allow developers control and sovereignty.
Contract consumer chains: help build out smart-contract development, such as EVM compatibility.
● Cosmos has been working with Circle to launch USDC in 2023, along with other blue-chip assets.
● Cosmos Hub could be compared to trusted stock exchanges; a credible place for assets to launch.
Sam:
● High demand for interchain security.
● Chains are willing to make the trade-off of using ATOM for staking for enhanced security.
● Cosmos Hub can be a neutral place to issue assets.
● Cosmos originally built out a DEX and a bridge, which failed. The better approach is to let top-tier teams build these protocols themselves.
● Team wants to make partnerships and scaling more transparent.
● Proposal for new whitepaper going to the Cosmos Hub next week.
Ethan:
● Originally the focus of Cosmos was the ecosystem of appchains, not the ATOM token.
● Atom 2.0 is a vision for the Cosmos Hub to provide value in multiple ways e.g., interchain security, scheduler, and allocator.
Tyler:
● Atom 2.0 helps bridge the Cosmos Hub to the other chains in the IBC.
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