Cosmos' new whitepaper proposes improvements to interoperability and also to the ATOM token issuance system.
During the Cosmoverse conference held in Medellin (Colombia), the developers of Cosmos, the Blockchain focused on interoperabilityhave Whitepaper presented in which they propose the changes that will come with the new era, focused on strengthening interoperability and security.
For the moment, the changes proposed in the new white paper are only “proposals,” since in order to implement them, first must be voted on by the community, something that is scheduled to happen on October 3.
What is Cosmos (ATOM)?
Cosmos is a blockchain project focused on offering an infrastructure capable of Unite multiple independent blockchains and make them interoperable.
The intention is to allow blockchains, their value and applications to be communicate with each other using a standard to ensure that such operations can be carried out quickly.
The native token of Cosmos, ATOM, is used to make transactions within the Cosmos ecosystem and is also used for the governance and staking.
What changes does the new Cosmos whitepaper implement?
The changes proposed in the new document seek fostering interoperability, decentralization and ecosystem security.
One of the proposed changes aims to reinvent the Cosmos Hub as an “Interchain network,” which will allow other Cosmos chains to use the Hub's validator groups, securing their networks instead of having to implement their own validator system.
This transition to an Interchain security system will make the Comos network more decentralized, in a more legal and defensible way.
Basically, this Interchain system allows third parties use the Cosmos Hub infrastructure to build commercial applications.
A new ATOM token issuance system
The new whitepaper also proposes a new ATOM token issuance model, with the aim of Improving the balance between ecosystem growth and widespread adoption of interoperability, always preserving the security offered by the original regime.
The new tokenomics will have two phases:
- Transition: During this phase, 10.000.000 ATOM tokens will be issued in the first month.
- Steady state: Since the transition, emissions will decline for 36 months until reaching “steady state”.
This new issuance system will allow other Cosmos blockchains estar better connected to Cosmos Hub.
The white paper also outlines a plan for Increase the value of ATOM through liquid staking. This will allow ATOM holders to undo their staking more easily.
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