Jae Kwon’s Call for Cosmos Fork
Jae Kwon, the co-founder of Cosmos, is rallying support for a fork of the network in response to recent governance decisions. His proposal follows the community’s approval of reducing inflation in the ATOM token’s staking rewards.
Background of the Controversial Proposal
Cosmos governance recently passed Proposal 848, which caps ATOM inflation at 10%, a reduction from the current 14.24%. This change will also decrease staking rewards from 19% to 13.4% APY. Kwon, opposing this decision, has proposed a network split.
Implications of ATOM’s Inflation Reduction
The proposal argues that ATOM’s high inflation rate relative to other cryptocurrencies has negatively impacted its market performance and monetary value, leading to constant sell pressure.
Community’s Mixed Response
The proposal passed with 41.1% support against 31.9% opposition, with a significant portion of ATOM’s supply mobilized for voting. While validators mostly backed the proposal, major actors within the Cosmos ecosystem, including Kwon, expressed dissatisfaction.
Potential of a Network Split
Kwon’s proposed fork, informally called AtomOne, aims to preserve the original inflation mechanism and tokenomics of ATOM. He suggests that instead of a mass sell-off, participation in both ATOM and the new fork could be allowed.
Cosmos Ecosystem’s Long-Standing Tensions
The proposed fork could potentially end years of political tension within the Cosmos ecosystem. According to crypto influencer John Galt, the fork would benefit both the original chain and ATOM holders, potentially leading to the largest airdrop ever for ATOM stakers.
Future of Cosmos and AtomOne
The proposal and subsequent fork suggest a pivotal moment for the Cosmos network, with potential impacts on innovation, governance, and community alignment within the ecosystem.
