Cosmos Network Revamps Native Token ATOM, Makes Key Changes in its new Whitepaper

27 September 2022, 13:00 GMT+0000
Updated by Kyle Baird
27 September 2022, 13:00 GMT+0000
In Brief
  • Blockchain interoperability platform Cosmos unveiled its new 27-page whitepaper on Monday.
  • With the revamp, Cosmos has changed its focus to developing a robust interchain economy.
  • This consequently repurposes native ATOM's function as preferred collateral within the Cosmos Network.
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Blockchain interoperability platform Cosmos unveiled its new 27-page whitepaper on Monday, making key changes to Cosmos Hub along with revamping its native token ATOM.

The paper was released at the Cosmoverse conference in Medellin, Columbia, outlining that “The vision of the Cosmos Network, as laid out in 2016, has been realized…The interchain as originally imagined is taking form.”

Issuing philosophy of Cosmos Hub gets an upgrade

The Cosmos Hub which was once responsible for creating the internet of blockchains has changed its focus to developing a robust interchain economy in the white paper. The document noted, “In this new role, the Cosmos Hub becomes a secure platform for others to build the next generation of interchain-native infrastructure and applications, opening new opportunities for interchain coordination.”

Notably, the paper highlights liquid staking and interchain security as a joint effort to build a more secure, decentralized, and interoperable base for companies that seek to capitalize on these interchain services.

With that, the issuing philosophy of Cosmos Hub has been renewed as a “provider of infrastructure services whose utility scales with the growth of the interchain.” This consequently repurposes native ATOM’s function as preferred collateral within the network.

The paper underlined, “Liquid Staking providers will be the first users of Interchain Security [allowing Cosmos to share security with other blockchains], enabling ATOM holders to earn staking rewards while also using their ATOM to pursue other opportunities.”

The Cosmos Hub’s monetary policy, which focuses on the staked ATOM supply, is intended to strike a balance between security and liquidity as an interchain reserve currency.

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Phase 2

In a blog post released on Sept. 23, co-founder Ethan Buchman stated that after the Initiation to create the interchain world, the ecosystem has entered the second phase of development called Integration. The co-founder explained that Integration is distinguished by the security of the Cosmos Hub and its realignment with the expansion of the larger interchain ecosystem.

Buchman said, “Cosmos has always been envisioned as a long-term project — we always knew that completion of the initial whitepaper was just the beginning. The Cosmos philosophy is fundamentally long-term – a humble nod to the diversity of human communities, to the fruits of empowering them, and to the futility of frustrating their political economic expression.”

At the time of press, ATOM has recorded minor gains in response to the news in the last 24 hours after spiraling losses amid broader market weakness in the past week. On CoinGecko, it is trading in the range one-day range of $13.82 and $14.81.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.