Cosmos Eyes ATOM Radical Redesign Amid Price Struggles
Cosmos Labs has opened an pressing seek for exterior economists to revamp the ATOM token amid the digital asset’s worth struggles.
According to the agency, the Cosmos SDK has grow to be a extensively used framework for launching blockchain networks. This consists of tasks tied to main enterprises and authorities initiatives typically cited as proof of “Fortune 500” curiosity.
Why Cosmos Wants to Overhaul ATOM’s Design
However, as a result of the software program is open supply, these customers can deploy unbiased, sovereign chains with out paying charges or royalties to the Cosmos Hub.
As a consequence, these institutional builders can use the community’s core expertise with out holding or interacting with ATOM.
The blockchain growth agency needs to vary this by selling a brand new “revenue-driven mannequin.” This strategy would monetize each on-chain and off-chain utilization.
“The purpose of this analysis effort is to not design a brand new tokenomic mannequin from first-principles, however fairly to supply analysis and design help for a revenue-driven mannequin that synergizes numerous sources of potential ATOM income with updates to ATOM’s provide dynamics and inflation schedule. Ultimately, ATOM’s utility will probably be pushed by these charges, both within the type of ATOM buybacks, ATOM staking rewards, different mechanisms, or some mixture thereof,” it stated.
Meanwhile, the initiative additionally marks a strategic pivot for the Cosmos ecosystem.
Cosmos Labs acknowledged that Interchain Security, the shared safety framework as soon as promoted as ATOM’s main worth driver, “failed to search out product market match.”
“Interchain Security is within the means of being deprecated, and the Hub’s financial structure stays comparatively indifferent from the broader exercise of the Cosmos ecosystem. It lacks a complete charge mannequin at this time, exterior of transaction charges occurring on the community,” the agency defined.
Consequently, this redesign effort factors towards financial fashions nearer to enterprise software program norms, together with consumption-based charges tied to utilization fairly than safety lease.
However, implementing any proposal would face vital political constraints. Any materials modifications should be permitted by the Cosmos Hub DAO, which has traditionally resisted measures seen as centralizing.
Cosmos Labs referenced a earlier proposal to scale back inflation that handed by a slim 3% margin. The choice triggered a pointy withdrawal of staked belongings, illustrating how delicate token economics stay inside the group.
Considering this, the agency said that any profitable proposal outlines potential income pathways, analyzes supply-side constraints, and gives sensible steerage aligned with stakeholder pursuits. The RFP closes Jan. 15.
Meanwhile, this transfer comes as ATOM has fallen nearly 76% this year to a five-year low of round $2.1.
This worth efficiency displays a deep stress throughout the ecosystem, even because the Cosmos software program stack has gained wider traction amongst blockchain builders and institutional pilots.
The put up Cosmos Eyes ATOM Radical Redesign Amid Price Struggles appeared first on BeInCrypto.
