Cosmos Hub, ATOM Token To Get Major Upgrade – Here Are The Details

After rallying more than 20% earlier this month, the Cosmos community is coming up with new features and tokenomics for its ATOM token.

A new whitepaper, released Monday at the Cosmoverse conference, suggested that Cosmos, a decentralized network of blockchains belonging to the broader ecosystem of Cosmos Hub, will soon undergo some major changes.

As per the new tokenomics, the token, often criticized for its supply inflation, will reduce issuance to 0.1%. The minting of ATOM ranges between 20% at worst and 7% at best based on the circulating supply and the number of tokens staked. As per CoinGecko, the circulating supply has increased 36.68% since March 2019.

With the new tokenmics, there will be a bump in supply, increasing the inflation rate to 41.03% and following a 36-month long process, the rate will be brought down to 0.01%, reaching emissions of 300,000 ATOM per month.

"The Cosmos Hub will secure and capitalize ecosystem-critical applications, while serving as the port of entry for new Cosmos participants, and a coordinating center for the infrastructure and administrative concerns of the interchain," the 27-page document read.

There are three new features being included in the Cosmos ecosystem – the Interchain Scheduler, the Interchain Allocator and the Governance Stack.

The Scheduler will function as a Maximal Extractable Value (MEV) solution and a secure cross-chain block space marketplace, while the Allocator will be a venue for economic coordination and interchain project alignment.

Governance Stack will create a governance superstructure for the entire Cosmos network and as a result, give each blockchain a shared infrastructure and vocabulary.

Cosmos co-founder Ethan Buchman, Osmosis co-founder Sunny Aggrawal and Iqlusion co-founder Zaki Manian were present at the conference held in Medellín, Colombia.