Altcoin, which Turks also invest in, Announces the Expected News!

Cosmos, one of the altcoin projects in which investors in Turkey also invest, made new announcements. The new token economics introduces an on-chain MEV marketplace, a system that facilitates economic compliance amid the Cosmos Blockchain, and a new governance structure to the Cosmos Hub. Here are the details…

“ATOM 2.0” announced to the Cosmos ecosystem: New ATOM tokens

The highly anticipated whitepaper for ATOM 2.0 was released today following a series of talks on Cosmoverse by Cosmos co-founder Ethan Buchman, Osmosis co-founder Sunny Aggrawal, and Iqlusion co-founder Zaki Manian. The cosmos-centered event kicked off this morning in Medellin, Colombia, and will run until September 28. Titled “The Cosmos Hub,” the 27-page document was penned by Buchman, Manian, and eight other prominent figures in the Cosmos community. New tokens for Cosmos Hub’s token ATOM have been outlined.

Cosmos is a decentralized independent Blockchain network. Not to be confused with the broader Cosmos ecosystem, Cosmos Hub is a private Blockchain designed to connect all other Blockchains in the network. In its current form, ATOM’s primary purpose is to secure the Cosmos Hub through a staking mechanism. ATOM’s token economy has received criticism for its inflationary dynamics. ATOM issuance currently ranges from 20% at worst to mid 7% at best, based on the percentage of total ATOM supply staked.

While the total ATOM supply stood at around 214 million in March 2019, data from CoinGecko shows that over 292.5 million ATOM tokens are currently in circulation. This indicates an increase of approximately 36.68%. The whitepaper proposes a new monetary policy for ATOM in two steps. First, a 36-month transitional phase would be initiated in which 10 million ATOMs per month would initially be mined. The issuance rate would then steadily decline until it reached 300,000 ATOM emissions per month, actively reducing ATOM’s inflation rate to 0.1%. In the long run, it is thought that ATOM issuance will therefore become linear rather than exponential.

Inter Security will make Cosmos faster and cheaper

The primary reason behind ATOM’s current monetary policy is to subsidize Cosmos Hub validators to provide security services. Under the new model, validators will instead be rewarded with revenue generated by Interchain Security, a system that allows Cosmos Hub to generate blocks for other blockchains in the Cosmos ecosystem.

Interchain Security is expected to make a Cosmos Blockchain a faster, cheaper and easier process. It will also enable scaling assays to be built and increase overall IBC contact. A security mechanism will allow for phased reinstatement of the brand new ATOM issuance model if the revenue of Interchain Security proves to be an inadequate substitute for validators.

What will be the three new features of the altcoin project?

The whitepaper suggested adding three main features to Cosmos Hub as follows.

  • Interchain Scheduler: The Mid-Chains Timer will function as an MEV assay. MEV stands for “Maximum Extractable Value”, which refers to the profit that can be obtained by reordering the processes in a block while it is being produced.
  • Interchain Allocator: Interchain Allocator’s ambition will be to facilitate economic cohesion across the Cosmos network. By establishing multilateral agreements amid IBC Blockchains and organizations, Allocator is expected to accelerate user and liquidity acquisition for Cosmos projects and secure ATOM’s position as the network’s reserve currency.
  • Management Stack: Finally, the whitepaper advocated the creation of a governance superstructure for the entire Cosmos network, called the Governance Stack. Unlike Separator, the Governance Stack’s mission will be to facilitate governance across Cosmos by giving each Blockchain a common infrastructure and wording.

Networking decisions will be up to altcoin holders

During their presentations on Cosmoverse, Buchman and Manian emphasized that the whitepaper should be a conversation starter. Ultimately, the development of Cosmos Hub will depend on altcoin ATOM holders who can vote for or against any random change to the Blockchain. While the proposal has only been posted on the Cosmos Hub governance forum for a few hours, the response has so far been mostly positive.

Manian stated that the new features of the Cosmos Hub will “make the EIP-1559 look nice,” referring to Ethereum’s burning mechanism. He made little effort to hide his rise on the stage. ATOM is currently trading at $14.52. It has risen 2.8 percent in the last 24 hours.

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