Cosmos co-founder wants to fork the network – Does ATOM concur?

Bart Millican November 29, 2023
Cosmos co-founder wants to fork the network – Does ATOM concur?

Cosmos [ATOM] co-founder Jae Kwon has announced his decision to fork the Cosmos network to create a new chain called AtomOne.

This decision comes in response to the recent governance proposal that reduced ATOM’s inflation rate from around 14% to 10% and its staking Annual Percentage Rate (APR) from around 19% to about 13.4%.

Regarded as the most controversial proposal in Cosmos’ four-year history, proposal #848 sought to “reduce inflation, provide better incentives for staking, and improve (the) security of the network.”

The proposal narrowly gained approval with 41.1% of votes in favor, surpassing the 38.5% of votes against. This marked the highest-ever voter turnout in the Cosmos ecosystem.

According to a document authored by Kwon, the proposed AtomOne be built upon Gaia. This is the same underlying software that powers the Cosmos Hub. AtomOne would, however, operate independently with its own governance plan and development team. 

Kwon noted further that his proposed fork would function as a political base aligning with the values of Gaia. It intends to achieve this by aiming for intelligent distribution of the ATOM1 token through the governance decisions to be made. 

Additionally, he mentioned that upon launching the ATOM1 token, most of the genesis supply would be allocated to individuals who cast their votes in opposition to proposal #848. Those who voted in favor of the proposal would have their allocation “slashed.”

The discussions around Cosmos during the weekend caused ATOM to attempt a crossover above the $10 price level. However, with bearish sentiments making a re-entrance, the token has shed some of its weekend gains. 

At press time, ATOM exchanged hands at $9.11, according to data from CoinMarketCap.

AMBCrypto found that token accumulation amongst daily traders has slowed since Kwon announced his decision to fork Cosmos.

As of this writing, ATOM’s key momentum indicators trended downward, signaling that traders in the alt’s spot market have preferred to sell their holdings rather than purchase more.

Bart Millican