Sep 27, 2022 07:57 UTC
Sep 27, 2022 at 07:57 UTC
New Cosmos whitepaper repurposes ATOM token and refines vision
The news comes one after some weeks once analysis firm city Labs proclaimed it might shift the main focus of its analysis and development efforts toward the Cosmos system.
Interoperability-focused blockchain network Cosmos has born a brand new whitepaper proposing a revamped Cosmos Hub aimed toward strengthening ability and security, together with key changes to its native ATOM token.
The new Cosmos whitepaper came out on Monday at the Cosmoverse conference in Medellin, Colombia. The upgrades printed within the whitepaper are still technically in “proposal” standing however changes are expected to be created on-chain on Oct. 3.
Cosmos is an ecosystem of blockchains designed to scale and interoperate with one another. Cosmos Hub was the primary blockchain to be engineered on Cosmos, where ab initio served as a negotiator between alternative interconnected blockchains.
The ATOM token is employed to interact among the Cosmos system, which may even be used for governance and staking functions.
Under the projected changes, Cosmos can become a additional practical, decentralized , and secure system.
One of the changes printed is that the reinvention of the Cosmos Hub because the “Interchain” internet, which is able to change alternative Cosmos blockchains to borrow the Hub’s validator pool to secure its network instead of having to search out their own.
Billy Rennekamp, the Cosmos Hub Product Lead further that the worth proposition behind this transition to Interchain Security would additionally create the Cosmos network “legally, defensibly decentralized .”
According to the whitepaper, Interchain Security will change Cosmos Hub to “host a completely unique class of applications with complementary practicality,” stating:
“Interchain Security offers shopper chains a quicker, easier, and cheaper path to promote [and] the event platform afforded by Interchain Security permits […] third parties to utilize the Hub’s essential infrastructure to create industrial applications.”
The whitepaper additionally proposes a brand new supply model for the native ATOM token, with the aim to strike a much better balance between system growth and interchain adoption “while still protective the protection afforded by the initial regime,” consistent with the whitepaper.
The new financial policy can see 2 phases: “transition” and “steady state.”
The transition part can see 10,000,000 ATOM issued within the 1st month, which is able to then decrease at a declining rate till it reaches the steady state part thirty six months later.
Cosmos co-founder Ethan Buchman aforementioned this new token supply model would change alternative Cosmos blockchains to become additional interconnected with the Cosmos Hub and ATOM.
The whitepaper additionally printed a concept to more accrue additional worth to the ATOM token by enabling leveraged liquid staking.
This will enable ATOM holders to unstake ATOM tokens as simply as they staked them, which is able to shortly be enabled by the Cosmos “liquid staking module.”
“The user expertise and capital potency improvement offered by liquid stalking is thus substantial” that it needed “full economic integration” into the new Cosmos interchain-oriented system, consistent with the whitepaper.
The release of the whitepaper comes a number of weeks once analysis and investment company city Labs proclaimed a shift of its R&D efforts to target the Cosmos system.
The analysis firm printed network speed, chain liquidity, ample decentralization, and cross-chain ability because the key factors behind its call to produce R&D efforts to assist more the expansion of Cosmos.