Following the approval of an inflation reduction proposal, Cosmos Hub’s founder Jae Kwon suggests forking the network to create AtomOne, stirring discussions and expectations among ATOM stakeholders.
Posted November 27, 2023 at 7:06 am EST.
Following a recent community vote to reduce the inflation rate of Cosmos Hub’s native token ATOM to 10%, founder Jae Kwon has proposed a significant change: a hard fork of the cryptocurrency to create a new network named AtomOne. This proposal marks a pivotal moment in the Cosmos ecosystem, reflecting both the evolving dynamics of the network and the differing visions within its community.
The passing of Proposal 848, which saw 41.1% of the network’s voting power in favor versus 31.9% against, was the catalyst for this development. The proposal’s approval entails a reduction of ATOM’s inflation from approximately 14% to a maximum of 10%, correspondingly reducing its annual percentage rate (APR) from around 19% to about 13.4%.
Jae Kwon, expressing his views on the outcome, took to X to urge the community towards action, stating, “Now let’s coordinate a split.” Kwon envisions AtomOne as a separate entity within the Cosmos ecosystem, potentially supporting both the existing ATOM and a new ATOM1 token.
Now listen up Cosmonauts. Despite our voting NWV #848 has ended up passing, something that isn’t too surprising (though it would be good to know whether the later votes came from newly purchased atoms) @cosmos @Allinbits_inc #raptureparty #atomone
Now let’s coordinate a split.
— antechristus #343 (@jaekwon) November 25, 2023
The proposition of AtomOne has sparked discussions and speculation within the Cosmos community. Opinions vary, with some community members, like X user @eggzNstaken, seeing the fork as a positive step towards diversification and security. “Two distinct products are being created, so why keep fighting when we can create these products and give more security choices for different projects to pick from,” they commented.
On the other hand, X user @cosmonaut_joon said, “Please don’t do this Jae. Accepting the results of a voting process whether one was against it or not is part of governance / democracy.”
Despite these discussions, the specifics of the AtomOne network, including its governance structure, tokenomics, and technical architecture, remain largely speculative. Kwon has hinted at the integration of ATOM and ATOM1, suggesting a collaborative rather than a divisive approach.
As discussions unfold, the price of ATOM has responded to these developments. In the wake of Kwon’s proposal, ATOM’s value has seen a 3% decline, trading at $9.40 according to CoinGecko data.
