How to renew Cosmos is a project launched in March 2019 that aims to focus on blockchain interoperability. Like any blockchain, Cosmos has its own token, the ATOM. More than three years after its launch, the ecosystem is evolving with the launch of a new White paper. This is intended to improve the utility of the ATOM token.
ATOM 2.0: the rebirth of the Cosmos
Since its launch in 2019, the network Cosmos received with great community enthusiasm. In fact, Cosmos offers an ecosystem made up of multiple blockchains, each with its own utility.
At the core of these blockchains, we find the cosmoshubkind of network economic center. Its mission is to ensure the security of the network as well as to connect the different blockchains through its IBC protocol.
However, over time, many users have come to the same conclusion: ATOM token and Cosmos Hub are useless. In fact, ATOMs can be staked to secure the Cosmos Hub, with no real use for it.
Thus, on the occasion of the Cosmoverse conference, organized in Medellín in Colombia, the Cosmos teams unveiled a new version of your white paper.
“The inaugural role of Hub Cosmos was to create the Internet of blockchains. He did so by funding the development of the Cosmos SDK, IBC, and Tendermint, the leading open source blockchain application primitives now populating the interchain. However, with an active and increasingly sophisticated IBC network, cross-chain needs have evolved. As a result, Cosmos Hub must also take on a new role: building a resilient cross-chain economy. »
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Initially, the new white paper introduces the notion of “cross-chain security”.
In fact, so far several proof-of-stake systems are evolving in parallel in Cosmos. So, we have Cosmos Hub PoS, where users go to stake ATOM to secure the Hub. So we have as many PoS as there are blockchains in the Cosmos ecosystem, each with its own token and set of validators.
However, in the case of newly launched blockchains, the number of validators and the number of tokens at stake (i.e. “up for grabs”) can be reduced. Therefore, the security of these chains turns out to be relatively low.
That’s why the Cosmos teams imagined the chain security. To keep it simple, cross-chain security is nothing more than a solution to share security.
So through this update the Cosmos Hub will be able to produce blocks and thus protect any other blockchain in its ecosystem.
“At a very high level, Interchain security allows a chain of infrastructure providers (such as Cosmos Hub) to take over producing blocks for a chain of consumers. To do this, it shares the set of validators that are responsible for producing the blocks. Participating validators manage two nodes, one for the Cosmos Hub and one for the consumer chain, and receive entitlements and rewards on both chains. »
the liquid staking It is a very popular concept in Ethereal through protocols like Swimming pool Where RocketPool. In short, when a user stakes his tokens through a liquid staking protocol, he receives in return tokens that represent your deposit in tokenized form. Therefore, the user does not have to tie up his capital and can resell his tokenized tokens at any time to recover his deposited tokens.
“The user experience and capital efficiency improvement offered by liquid staking are so significant that liquid staking assets are expected to become the dominant means of transaction, especially for off-chain use cases. »
Therefore, the new version of Cosmos will integrate a Liquid Staking module at Cosmos Hub level.
More value for the ATOM token
As you may have understood, this update has as its main objective give greater importance to the Cosmos Hub and the ATOM token in the Cosmos ecosystem.
In fact, thanks to cross-chain security, ATOM token gains utility by becoming the core asset to secure Cosmos and all of its blockchains. Therefore, many chains in the ecosystem will rely on the ATOM token as the main asset to secure the blockchain.
In addition, the introduction of liquid staking will facilitate access to staking of ATOM tokens and give the token a greater liquidity.
Finally, this update will introduce a modification of the monetary policies of the protocol. Thus, we are going to witness a reduction in the issuance of ATOM tokens. This change in monetary policy will take place in two parts:
- The transition ;
- The state of balance.
Initially, the transition will take place over a period of 36 months. During the first nine months, the issuance of ATOM tokens will increase to help provide seed funding for the Cosmos Hub treasury. Period after which the emission will be drastically reduced.
Thereafter, the steady state will take over, emitting 300,000 ATOMs per month.
Take advantage of this update ASAP and put your ATOM tokens to work. Indeed, it is extremely easy to stake your ATOMs through the Keplr wallet. The Cosmos galaxy is in the midst of a transition and should continue to be talked about in the coming months as fundamental new things begin to be implemented.
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