Following the passing of a community vote to slash inflation on the Cosmos Hub’s native token ATOM to 10%, founder Jae Kwon has called for a hard fork of the cryptocurrency.
The rift in the Cosmos community has seen the price of ATOM slip by 4% in the past day, to its current value of $9.29, per CoinGecko.
Proposal 848 passed with 41.1% of the network’s voting power versus 31.9% against, with 6.6% voting for a veto and 20.4% abstaining. The proposal will see ATOM’s inflation cut from around 14% to a maximum of 10%, reducing its APR from around 19% to around 13.4%.
Proponents of the proposal argued that its inflation rate was higher than necessary to maintain network security, and that validators would remain "break-even or profitable" at a maximum 10% inflation rate, with the option of increasing their commission rate to cover operational expenses.
In a post on Twitter, Jae Kwon called for the community to “coordinate a split,” suggesting that a new network, AtomOne, should be forked from Cosmos with a new ATOM1 token; the proposed new network would support both ATOM and ATOM1.
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
With 10% of the genesis supply of ATOM1 set to be premined for “various purposes,” a genesis distribution of the remaining 90% of token supply would be airdropped, “judged by Alignment based on voting activity,” to those who opposed proposal 848.
Although the fork will use much of the existing Gaia architecture employed by Cosmos Hub, it will retain a higher maximum inflation rate of 20%, and would include an altered governance mechanism that would require proposals to pass a two-thirds threshold to achieve quorum.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Coinbase has now overtaken two of the world's largest securities exchanges in terms of transaction revenue, according to a crypto analyst from the private bank Coutts.
The crypto exchange generated $5.75 billion in transaction revenue over the past 12 months, compared to just $4.54 billion for the Nasdaq, where many of the world’s most valuable companies, including Apple, Google, and Microsoft, are traded.
Coinbase also surpassed the Stock Exchange of Hong Kong, the HKEX, which generated $2.67 b...
After several extended reviews since June this year, the Securities and Exchange Commission (SEC) has finally approved the first spot exchange-traded funds combining Bitcoin and Ethereum.
The agency has authorized Nasdaq to list the Hashdex Nasdaq Crypto Index US ETF and the Cboe BZX Exchange to list the Franklin Crypto Index ETF, according to a filing released Thursday.
"The proportion of bitcoin and ether to be held by each Trust will be based on free-float market capitalizations," the filing...
Dogecoin (DOGE) fell 12.4% in the past 24 hours as a broader market decline continues, triggered by the Federal Reserve's latest economic outlook.
The meme coin has dropped to $0.31, while trading volume surged 67% to $10.25 billion as holders repositioned their bags. It's now down 35% from its 2024 high of $0.47.
Despite the pullback, Dogecoin's market capitalization remains at $46.6 billion, maintaining its position as the seventh-largest crypto.
Powell's hawkish comments about higher-than-exp...