❌ Rejected ATOM 2.0 offer from Cosmos Hub

Cosmos ($ATOM) recently released a new whitepaper that presents an updated roadmap for the ‘Blockchain Internet’. The whitepaper, known as ATOM 2.0, looked at several key changes to Cosmos Hub and detailed how they will affect the broader Cosmos and $ATOM ecosystem.

Important new features of ATOM 2.0:

Liquid Staking.

Liquid Staking providers will be the first users of Interchain Security, allowing ATOM holders to earn rewards for staking while using their ATOMs to pursue other revenue-generating opportunities. Together, Interchain Security and Liquid Staking create a more secure and reliable baseline for projects in the Cosmos universe.

Interchain Allocator.

Interchain Allocator aims to turn the Hub into a decentralised venture capital fund and, in turn, the ATOM token into an IBC index play, offering ATOM investors a stake in the growth of the entire Cosmos ecosystem, compared to the indirect relationship they had before ATOM 2.0.

Inter-chain scheduler.

The scheduler monetises IBC’s economic activity through an interchain blockchain marketplace to make MEVs more efficient and secure.

Why was the proposal rejected?

After weeks of debate and an intense two-week voting period, the Cosmos Hub community decided yesterday morning to reject proposal #82, “ATOM 2.0: The New Cosmos Hub Vision”.

Although a majority of tokens were indeed voted in favour, Cosmos Hub’s governance mechanics ensure that the proposal cannot be accepted if more than 33.4% of those who voted chose “NoWithVeto”, a system that prevents the hub from falling victim to a 51% attack. Thus, “NoWithVeto” is a strong signal that community members use to signal that the proposal is actively harming Cosmos Hub’s interests.

The 26-page document was not limited to changing one or two aspects of the ATOM token, as originally expected by the community, but aimed to fundamentally change the way Cosmos Hub operates by introducing three new core tools in addition to the tokenomics overhaul.

It is likely that the various components of the ATOM 2.0 document will eventually be presented to the community for voting as separate drafts, similar to the detailed proposal for Interchain Security adopted in March.

To those who voted for NoWithVeto, I respect your decision and hear you loud and clear: the proposal in its current form is untenable. Even if it had been passed, amendments would have been required! — Ethan Buchman on his Twitter.

Our resources: Web | Blog | Twitter | Discord | Telegram | Navigation