New Cosmos white paper repurposes ATOM token and refines imaginative and prescient

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Interoperability-focused blockchain community Cosmos has dropped a brand new white paper proposing a revamped Cosmos Hub geared toward strengthening interoperability and safety, together with key adjustments to its Cosmos (ATOM) token. 

The brand new Cosmos white paper was launched on Monday on the Cosmoverse convention in Medellin, Colombia. The upgrades outlined within the white paper are nonetheless technically in “proposal” standing, however adjustments are anticipated to be made on-chain on Oct. 3.

Cosmos is an ecosystem of blockchains designed to scale and interoperate with one another. Cosmos Hub was the primary blockchain to be constructed on Cosmos, which initially served as an middleman between different interconnected blockchains.

ATOM is used to transact throughout the Cosmos ecosystem, which will also be used for governance and staking functions.

Beneath the proposed adjustments, Cosmos will turn into a extra interoperable, decentralized and safe ecosystem.

One of many adjustments outlined is the reinvention of the Cosmos Hub because the “Interchain” net, which is able to allow different Cosmos blockchains to borrow the Hub’s validator pool to safe its community slightly than having to seek out their very own.

Billy Rennekamp, the Cosmos Hub product lead, added that the worth proposition behind this transition to Interchain Safety would additionally make the Cosmos community “legally, defensibly decentralized.”

In response to the white paper, Interchain Safety will even allow Cosmos Hub to “host a novel class of purposes with complementary performance,” stating:

“Interchain Safety provides client chains a sooner, simpler, and cheaper path to market [and] the event platform afforded by Interchain Safety permits […] third events to make the most of the Hub’s important infrastructure to construct industrial purposes.”

The white paper additionally proposes a brand new issuance mannequin for ATOM, with the purpose to strike a greater steadiness between ecosystem progress and interchain adoption “whereas nonetheless preserving the safety afforded by the unique regime,” in response to the white paper.

The brand new financial coverage will see two phases: “transition” and “regular state.”

The transition section will see 10,ok,ok ATOM issued within the first month, which is able to then lower at a declining price till it reaches the regular state section 36 months later.

Cosmos co-founder Ethan Buchman mentioned this new token issuance mannequin would allow different Cosmos blockchains to turn into extra interconnected with the Cosmos Hub and ATOM.

Associated: A lot of the crypto market is down, however Cosmos (ATOM) worth is up — Why?

The white paper additionally outlined a plan to additional accrue extra worth to the ATOM token by enabling leveraged liquid staking.

This can permit ATOM holders to unstake ATOM as simply as they staked them, which is able to quickly be enabled by the Cosmos “liquid staking module.”

“The consumer expertise and capital effectivity enchancment provided by liquid stalking is so substantial” that it required “full financial integration” into the brand new Cosmos interchain-oriented ecosystem, in response to the white paper.

The discharge of the white paper comes a couple of weeks after analysis and funding agency Delphi Labs introduced a shift of its R&D efforts to give attention to the Cosmos ecosystem.

The analysis agency outlined community pace, chain liquidity, adequate decentralization and cross-chain interoperability as the important thing components behind its choice to supply R&D efforts to assist additional the expansion of Cosmos.