Cosmos Labs has opened an pressing seek for exterior economists to revamp the ATOM token amid the digital asset’s value struggles.
In line with the agency, the Cosmos SDK has develop into a broadly used framework for launching blockchain networks. This consists of tasks tied to main enterprises and authorities initiatives usually cited as proof of “Fortune 500” curiosity.
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Why Cosmos Needs to Overhaul ATOM’s Design
Nevertheless, as a result of the software program is open supply, these customers can deploy impartial, sovereign chains with out paying charges or royalties to the Cosmos Hub.
In consequence, these institutional builders can use the community’s core know-how with out holding or interacting with ATOM.
The blockchain growth agency needs to alter 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 moderately to supply analysis and design assist for a revenue-driven mannequin that synergizes varied sources of potential ATOM income with updates to ATOM’s provide dynamics and inflation schedule. In the end, ATOM’s utility might be pushed by these charges, both within the type of ATOM buybacks, ATOM staking rewards, different mechanisms, or some mixture thereof,” it acknowledged.
In the meantime, the initiative additionally marks a strategic pivot for the Cosmos ecosystem.
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Cosmos Labs acknowledged that Interchain Safety, the shared safety framework as soon as promoted as ATOM’s main worth driver, “failed to search out product market match.”
“Interchain Safety 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 right now, 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 moderately than safety hire.
Nevertheless, 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 cut 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.
Contemplating this, the agency acknowledged that any profitable proposal outlines potential income pathways, analyzes supply-side constraints, and presents sensible steering aligned with stakeholder pursuits. The RFP closes Jan. 15.
In the meantime, this transfer comes as ATOM has fallen almost 76% this yr to a five-year low of round $2.1.
This value 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.