Dear Bitruers,
Today, we are excited to share a new article about Atom1!. Be sure to follow Bitrue's Official Twitter and Telegram to stay updated!
Introduction
Cosmos, renowned for its interconnected blockchain ecosystem, faces a pivotal moment as co-founder Jae Kwon unveils plans to fork the Cosmos Hub following a contentious governance decision. This move comes after the approval of a proposal to cap the maximum inflation of Atom, Cosmos' native token, at 10%.
Read More: Cosmos Votes to Cap Atom Inflation at 10%
Fork and Token Creation
The proposed fork will birth a new network, AtomOne, accompanied by a fresh token, ATOM1. Notably, the genesis supply will favor those who opposed the inflation reduction proposal, while proponents face potential penalties. Around 10% of the new token's supply will be pre-mined for diverse purposes, excluding the Interchain Foundation from the airdrop.
Governance Rift
A close vote saw 41.1% in favor of limiting Atom's inflation, highlighting concerns about security and validator profitability. However, Kwon, architect of Cosmos' Tendermint consensus algorithm, vehemently opposed the decision, citing security implications and the potential impact on network stability.
Features of ATOM1 and Governance Changes
ATOM1 aims to revamp governance within the Hub by adjusting decision-making thresholds. Operating on Gaia software with chain ID "cosmoshub4," the fork maintains essential features like IBC and interchain security. It retains the original 20% maximum inflation rate to fairly reward validators and stakers. Kwon also proposes a fee token, Photon (phATOM1), to complement ATOM1.
Cosmos Ecosystem Impact
The fork signifies a significant divergence within the Cosmos ecosystem's governance trajectory. It marks a new phase in Cosmos' evolution, distinct from Kwon's other blockchain project, Gno.Land.
This move by Jae Kwon marks a pivotal moment in Cosmos' history, introducing a new network and token amid a governance dispute that reflects the complexity and evolution of decentralized ecosystems.
Read More: Jito Launches JTO Governance Token and Airdrop for Community