Home Altcoins News Cosmos in Turmoil: Founder Initiates AtomOne Fork Amidst Governance Dispute

Cosmos in Turmoil: Founder Initiates AtomOne Fork Amidst Governance Dispute

Cosmos in Turmoil: Founder Initiates AtomOne Fork Amidst Governance Dispute

In a surprising turn of events, Cosmos founder Jae Kwon has taken a stand against a recent vote to reduce ATOM production, leading to plans for a hard fork named AtomOne. This article delves into the details of the governance dispute, the implications of the production reduction vote, and the ambitious proposal for a new autonomous network, AtomOne.

The Governance Challenge: ATOM Production Reduction
The Cosmos Hub, governed by a decentralized community, faced a critical decision regarding the reduction of the maximum inflation rate of its native token, ATOM. The proposal aimed to decrease the inflation rate from 14% to 10%, responding to concerns about network security and potential impacts on token prices. The contentious vote resulted in a narrow approval, with 41.1% in favor and 38.5% against.

Critics argued that the reduction could disproportionately affect small validators, labeling it as abrupt and ill-researched. The proposed adjustment would also lower ATOM’s annualized staking yield from 19% to 13.4%, affecting stakeholders involved in staking, governance, and transaction fee coverage within the Cosmos network.

Jae Kwon’s Dissent and the Birth of AtomOne
Founder Jae Kwon vehemently opposed the approved proposal and, in response, unveiled plans for a hard fork named AtomOne. This new network aims to operate independently, boasting its governance plan and development team. Kwon’s vision for AtomOne centers on achieving heightened decentralization and avoiding what he perceives as a potential market collapse resulting from mass selling.

Kwon expressed his intention to integrate $ATOM with $ATMO/$ATOM1, emphasizing the importance of avoiding market disruption. He called for improvements to the README and invited tokenomics experts to contribute their ideas, emphasizing the collaborative nature of this endeavor.

The AtomOne Fork Proposal
The proposed fork involves duplicating the existing “cosmoshub4” while maintaining the current software. However, AtomOne will implement a unique plan developed by decentralized teams, surpassing the decentralization level of Gaia, the Cosmos Hub’s current iteration. The invitation is extended to all those who voted against the production reduction proposal (NO voters) to participate in AtomOne’s development.

Kwon addressed concerns about the influence of NO/NWV (NoWithVeto) voters both within and outside the hub, emphasizing the existence of a community united by logical principles and shared goals. The plan aims to showcase the antifragility of a decentralized system, highlighting its resilience against attempts at centralized control.

Embracing Decentralization and Antifragility
The statement from Jae Kwon underscores the decentralized nature of blockchain networks, asserting that even a logical minority can self-organize and resist attempts at majority control. Kwon concluded by emphasizing the importance of exodus, suggesting that those who disagree have the freedom to exit and contribute to the creation of a more successful civilization, free from potential failures.

Market Reaction and ATOM’s Current Status
As this governance dispute unfolds, Cosmos’ native token, ATOM, experiences some volatility in the market. At the time of writing, ATOM is trading at $9.56. Traders and stakeholders in the Cosmos network are closely monitoring these developments, recognizing the potential impact on ATOM’s value and the broader implications for the cryptocurrency community.

Navigating Cosmos’ Future
The Cosmos community finds itself at a crossroads, with divergent visions for the network’s governance and future trajectory. The proposed AtomOne fork introduces an intriguing chapter in the Cosmos story, with questions lingering about the potential success of this autonomous network and its ability to attract a community aligned with its principles.

As the crypto world watches the drama unfold, the Cosmos network’s ability to navigate these challenges will serve as a testament to the resilience and adaptability of decentralized systems. The coming days will reveal the path chosen by AtomOne and its community, shedding light on the evolving landscape of blockchain governance and the pursuit of decentralized ideals.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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