Cosmos Crypto: New roadmap for Atom

Updated Sep 29. 2022 at 1:17 p.m.

At Cosmoverse Conference, Atom Cosmos Crypto Released September 26, 2022 its white paper 2.0 “White-Paper”, announcing a very ambitious new roadmap: reassessment of the usefulness of its Atom token, and a greater secure scaling of its ecosystem. What does this new “roadmap” contain? What means will they put in place to achieve this?

Cosmos Crypto “the internet of blockchains”

Better known as Atom Cosmos Crypto, this blockchain aims to streamline the communication between blockchains and connect them together.

Indeed, each blockchain has its own language, and its mode of operation, which generates real problems in communication, data sharingand transactions. In all this technological din, Cosmos Crypto wishes to take up the challenge, by providing this solution, that ofinterconnect blockchains.

Let’s take a concrete example, with this solution, Ethereum could directly pass transactions with other Layer 1 like Solana, knowing that upstream they are not interoperable.

Cosmos Crypto is based on 3 major tools:

  • Tendermint : it is a very fast consensus protocol created in 2014, long before Ethereum which was born in 2015. It allows developers to create their secure and fast “Proof Of Stake” blockchain: 1 second is enough to create 1 block and processes 5,000 to 10,000 transactions per second. In comparison, it takes 10 minutes to create a block on Bitcoin.
  • SDK Cosmos (software development kit): it allows developers to create applications on blockchains based on Tendermint, if we were to simplify and popularize at best, it is the WordPress for applications based on tendermint.
  • IBC (inter-blockchain communication): it is a communication protocol allowing blockchains that do not use Tendermint to be able to exchange with each other.

The great novelties of White Paper Cosmos Crypto

Interchain Security “ Interchain Security “and the liquid stake” Liquid Staking are the main novelties of the Cosmos Atom Crypto network. This first notion is a turning point for Cosmos Crypto, indeed, all the projects revolving around their ecosystem will benefit from the securing of their infrastructure thanks to validators.

To fulfill these conditions, each project using the Cosmos Hub network, a chain native to the Cosmos Crypto network, will have to remunerate the validators in the form of “rent” in Atom tokens. The benefits are double for Atom Cosmos Crypto, as the players in its ecosystem will be further protected from computer attacksand thanks to this mechanism, their development will progress at a lower cost, since their budget will be allocated on other expenses.

Also, the revenue generated from the rental of infrastructure will allow Cosmos Crypto to finance its expansion, and to enlarge its community by bringing in new players.

The other new feature is liquid staking Liquid Staking, this form of staking, allows investors to remain liquid in their liquidity provision in a decentralized finance protocol (DEFI). Concretely, users will have to deposit the “Atom” token in staking, in exchange, they recover a token of Proof of filing which will allow them to optimize their yields by depositing it in turn in another protocol.

What impact on the Tokenomic Cosmos Atom Crypto?

The reviews in verse Tokenomic and the utility of the Cosmos Crypto token have never ceased, and have always been grounded. In effect, inflation has always been very important on the distribution of the token.

In the initial distribution of the Atom token, the distribution was carried out in this way: to the donors of the Cosmos Fundraiser (75%), to the main donors (5%), to the Cosmos Network Foundation (10%) and to ALL IN BITS, Inc. (10%). From Genesis, a third of the total amount of tokens is redistributed to validators, hence the origin of this significant inflation.

1664592467 438 Cosmos Crypto New roadmap for Atom

The Cosmos Atom Crypto team understood the message, and worked on the subject on this second version of White Paper, by proposing a reduction in inflation on the token. The mechanism implemented encourages holders of the Atom token to deposit it in staking, in order to avoid a negative rate. The main idea of ​​reducing inflation is based on a token burn “burn” when a transaction takes place, which would reduce the total number of tokens in circulation.

Cosmos adopts this Monetary Policy in two stages, inflation will rise initially, for 36 months, as validators will be rewarded more for network security for all second chains (consumer chains) following the implementation of interchain security.

This time frame is given for blockchains to join Interchain Security. Once this time has elapsed, stability on the distribution of the token represents the 2nd phase

Cosmos Crypto Distribution
Atom token distribution chart

This graph represents the distribution of the Atom token as soon as the interchain security is activated: 10,000,000 ATOMs are issued per month, then the supply will gradually decrease to reach a stability and a balance 36 months after launch.

Cosmos Cryto: What vision for the future?

Cosmos crypto continues its rewards program “Airdrop” token drops which allow holders of the Atom token to benefit from the tokens distributed free of charge by emerging projects on the Cosmos Hub. Thanks to this engineering operation, the network ensures a decentralization perfect since the tokens are dispersed, and guarantees the security of the network.

During the Cosmoverse conference which took place from September 26 to 28, 2022 in Medellin, Colombia, the teams proved once again, and remember their fundamentals: federate blockchains both on their ecosystem but also on “competing” networks. The Atom token takes on a new dimension, and gains in usefulness by placing itself at the center of securing its ecosystem.

Cosmos has achieved its first goal, that of creating the internet of blockchains, thanks to these open-source tools Cosmos SDK, IBC and Tendermint. Now their vision evolves, the challenge to be taken up is considerable, that of adopting a resilient monetary policy for its entire ecosystem

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Cosmos Crypto: New roadmap for Atom

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