ATOM, the native cryptocurrency of Cosmos Hub, is experiencing modest losses following a call by Cosmos founder Jae Kwon to bifurcate the blockchain. Kwon’s proposal for a split comes in the wake of the Cosmos community’s decision to approve a reduction in ATOM’s inflation rate from 14% to 10%.
In response to the community’s approval of proposal 848, which garnered 41.1% support for the inflation reduction and 31.9% against it, Kwon expressed dissatisfaction and advocated for a hard fork, referring to it as AtomOne. This proposed hard fork would bifurcate the Cosmos Hub, aiming to create a new chain that supports both the existing ATOM token and the native ATOM1.
Kwon emphasized the need for an integrated plan involving $ATOM and $ATMO/$ATOM1 to facilitate participation without triggering mass selling. Despite Kwon’s reservations about the approved proposal, he sees the potential for innovation and improvement in tokenomics.
Notably, cryptocurrency expert “John Galt” believes that a hard fork could resolve longstanding community conflicts within Cosmos Hub and be favorable for ATOM token holders. Galt anticipates a bullish scenario, citing past political tensions that hindered the development of Cosmos Hub.
Galt further predicts that the hard fork could lead to a substantial airdrop for ATOM holders and a significant increase in trading volume for both ATOM and ATOM1 tokens. Airdrops involve the distribution of free tokens to a community as part of a marketing initiative, commonly occurring when a blockchain undergoes a split.
While ATOM briefly surpassed $10 over the weekend, it is currently trading 3.5% lower at $9.59. The cryptocurrency’s struggle to maintain momentum above the three-week-long resistance is attributed to broader market factors, including Bitcoin’s challenges in surpassing the $38,000 mark.
| Aspect | Details |
|---|---|
| Cryptocurrency | ATOM |
| Blockchain | Cosmos Hub |
| Current Price | $9.59 |
| Change on the Day | -3.5% |
| Founder’s Proposal | Split the blockchain into two (AtomOne) |
| Community Decision | Approved proposal to reduce ATOM inflation to 10% |
| Inflation Reduction | From 14% to 10% |
| Proposal 848 Results | 41.1% support, 31.9% against |
| Annualized Staking Yield | Expected to decrease from 19% to 13.4% |
| Staking Rewards | Locking coins in return for rewards |
| Expert Opinion (John Galt) | Bullish outcome; potential resolution of community conflicts |
| Airdrop Possibility | Expected, potentially the largest for ATOM |
| New Chain | AtomOne (ATOM1) |
| Trading Volume Outlook | Potential increase for ATOM and ATOM1 |
| Market Challenges | Bitcoin struggling to surpass the $38,000 mark |