Jae Kwon, founder of Cosmos, suggests splitting the blockchain in two following a community decision to reduce ATOM inflation.
Jae Kwon announces AtomOne, a fork of the Cosmos Hub that will reward ATOM holders who voted against the halving proposal through an airdrop.
The announcement of the blockchain fork leads to a slight decrease in ATOM.
In a significant move within the Cosmos network, founder Jae Kwon has called for a split of his blockchain, AtomOne, following the community’s decision to reduce the inflation of the native token ATOM from 14% to 10%. The Cosmos Hub, which serves as an intermediary among all independent blockchains on the network, uses ATOM to power its ecosystem of scalable and interoperable blockchains. Proposal 848, which sparked this call, aimed to address the issue of overpayment by the Hub for security and the resulting disincentive of ATOM in decentralized finance.
ATOM, the native token of the Cosmos Hub, experienced moderate losses one day after Jae Kwon’s announcement. Despite the initial market reaction, some, including “John Galt“, a Cosmos expert and Head of Strategy at Stride Zone, see the fork as a positive development for ATOM token holders. Galt argues that a split could resolve ongoing community disagreements and lead to more innovative advancements within the Cosmos Hub. He also anticipates that the fork could result in significant airdrops for ATOM and an increase in trading volume for ATOM and ATOM1 tokens.
Jae Kwon’s proposed fork for AtomOne includes integrating the current ATOM token with the new ATOM1, suggesting a collaborative approach to the chain split. This plan, still in development, highlights the evolving nature of blockchain governance and its impact on token economics. The potential split, if implemented, could mark a pivotal moment in Cosmos’ history, providing a fresh perspective on managing political tensions and fostering innovation within the blockchain community.
