Cosmos founder Decides to Fork Cosmos Hub In Protest Against ATOM’s Reduced Production

Cosmos founder Jae Kwon has expressed his dissent against the ATOM production reduction vote, which, despite his opposition, was successful. In response, Kwon has announced plans to fork Cosmoshub4, unveiling a new network named AtomOne.

The upcoming network is set to operate autonomously, featuring its own governance plan and development team, with a focus on achieving increased decentralization.

Cosmos Votes to Reduce Infaltions, Drops Staking Yield

The governing body of the Cosmos Hub has given approval to a proposal aimed at reducing the maximum inflation rate of its native token, Cosmos (ATOM), from 14% to 10%. This decision comes in response to concerns about the high inflation rate and its potential impact on network security and token prices.

Additionally, the proposed adjustment would lead to a decrease in ATOM’s annualized staking yield from around 19% to approximately 13.4%. ATOM tokens play crucial roles in staking, governance, and covering transaction fees within the Cosmos network. The proposal faced a close vote, with 41.1% in favor and 38.5% against.

Critics of the proposal also argued that the change might adversely affect small validators and deemed it “an abrupt, short-sighted, and ill-researched idea” that could disrupt retail and businesses involved in building, trading, and validating ATOM.

Notably, the Cosmos Hub recently underwent an upgrade introducing a liquid staking module, allowing users to bypass the previous 21-day unbonding period when unstaking ATOM tokens. This enhancement further provides greater flexibility to ATOM holders, enabling the use of staked tokens in the Cosmos decentralized finance ecosystem without compromising staking rewards.

Cofounder Refuses the Developments, Plans Hard Fork

As stated earlier, Jae Kwon has planned a hardfork of the Cosmos Hub blockchain while renaming the forked version as CosmosOne.

✓ Share:

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.