The Evolution of $ATOM: Cosmos Continues to Expand Despite Rejected Proposal

Bundit
Bundit
Tokenomist
The Evolution of $ATOM: Cosmos Continues to Expand Despite Rejected Proposal

A closer look at $ATOM's recent developments and future prospects in the blockchain space

Key Takeaway: Despite the rejection of the $ATOM 2.0 proposal, Cosmos continues to evolve, with a focus on Interchain Security (ICS) and an expanding ecosystem, indicating a potentially bullish future for $ATOM.

Introduction: The Cosmos Vision and $ATOM Token

Cosmos aims to address the lack of interoperability in the blockchain space by providing a platform for different blockchains to communicate and interact with each other. Some people refer to this as Layer 0, allowing developers to build their own appchains on top of Cosmos. The native token of Cosmos is $ATOM, which can be utilized for staking, transaction fees, and governance.

Source: mapofzones.com

The $ATOM 2.0 Whitepaper and its Rejection

The $ATOM 2.0 whitepaper proposed three main improvements to address the growth of the Cosmos ecosystem:

  1. Interchain Security: Securely scaling Cosmos
  2. Interchain Scheduler: A secure blockspace marketplace
  3. Interchain Allocator: Economic coordination and long-term alignment

However, the Cosmos community rejected the $ATOM 2.0 proposal due to concerns over centralization, impact on existing validators, and potential changes to $ATOM issuance in the short term, approximately eight months.

Source: Atom 2.0 Whitepaper

Token Unlocks Data and Community Activity

Currently, only 23% of $ATOM tokens are locked. The only remaining unlockable part is the block rewards, which will be unlocked linearly.

Source: https://token.unlocks.app/cosmos

Over the past year, daily active developers increased by approximately 16%, while daily active users remained about the same. Moreover, Cosmos ranks among the top 3 in terms of active developers, trailing behind only Polkadot and Ethereum.

Source: https://tokenterminal.com/terminal/metrics/active-developers

Upcoming Developments: $dYdX App-chain and Native $USDC

There is a notable migration to Cosmos from dYdX, which is currently still under development. Additionally, the announcement of native $USDC on Cosmos has generated interest.

Conclusion: A Promising Future for $ATOM

Despite the rejection of the $ATOM 2.0 proposal, Cosmos continues to evolve, with a focus on Interchain Security (ICS) and an expanding ecosystem. Considering the aforementioned data metrics and the anticipated implementation of upcoming upgrades (ICS and ICA), as well as the cross-chain narrative, $ATOM may experience bullish sentiment in the future.

Disclaimer:

  1. Non-Financial Advice.
  2. Not Sponsored content.

Check $ATOM Unlocks (emission)
https://token.unlocks.app/cosmos

References:

  1. https://mapofzones.com/
  2. https://tokenterminal.com/terminal/metrics/active-developers
  3. https://blockworks.co/news/usdc-is-coming-to-cosmos-in-2023