Interoperability-focused blockchain community Cosmos has dropped a brand new whitepaper proposing a revamped Cosmos Hub geared toward strengthening interoperability and safety, together with key modifications to its native ATOM token.
The brand new Cosmos whitepaper was launched on Monday on the Cosmoverse convention in Medellin, Colombia. The upgrades outlined within the whitepaper are nonetheless technically in “proposal” standing however modifications 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.
The ATOM token is used to transact inside the Cosmos ecosystem, which will also be used for governance and staking functions.
Below the proposed modifications, Cosmos will turn into a extra interoperable, decentralized, and safe ecosystem.
One of many modifications outlined is the reinvention of the Cosmos Hub because the “Interchain” net, which can allow different Cosmos blockchains to borrow the Hub’s validator pool to safe its community quite than having to search 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.”
Based on the whitepaper, Interchain Safety will even allow Cosmos Hub to “host a novel class of purposes with complementary performance,” stating:
“Interchain Safety provides shopper chains a quicker, 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 whitepaper additionally proposes a brand new issuance mannequin for the native ATOM token, 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 accordance with the whitepaper.
The brand new financial coverage will see two phases: “transition” and “regular state.”
The transition part will see 10,000,000 ATOM issued within the first month, which can then lower at a declining price till it reaches the regular state part 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.
The whitepaper additionally outlined a plan to additional accrue extra worth to the ATOM token by enabling leveraged liquid staking.
This can enable ATOM holders to unstake ATOM tokens as simply as they staked them, which can quickly be enabled by the Cosmos “liquid staking module.”
“The person 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 accordance with the whitepaper.
Intern notes on Cosmos’ new 27 web page whitepaper
– Safe financial scaling ⛓
– $ATOM as reserve foreign money
– New financial engine
Undoubtedly value a learn!
— (Delphi, Intern) (@delphiintern) September 26, 2022
The discharge of the whitepaper comes a number of weeks after analysis and funding agency Delphi Labs introduced a shift of its R&D efforts to concentrate on the Cosmos ecosystem.
The analysis agency outlined community velocity, chain liquidity, enough decentralization, and cross-chain interoperability as the important thing elements behind its resolution to offer R&D efforts to assist additional the expansion of Cosmos.