Are Cosmos’ ecosystem growth and roadmap enough to sustain ATOM’s current 50% monthly rally?
In September 2022, Interchain Foundation, the team behind Cosmos’ development , introduced the Cosmos ATOM 2.0 whitepaper. The document proposed significant changes to Cosmos’s design, including a tokenomics upgrade to fund the Cosmos ecosystem development and reduce ATOM inflation.
While the whitepaper launch acted as a bullish catalyst for ATOM price, the community vote to pass the proposal eventually failed, primarily because of its enormity. Some community members wanted to take a measured approach to each development feature listed in the whitepaper, starting with Interchain Security in Q1 2023.
Interchain Security will enhance the value accrual position of ATOM as a modular chain. New blockchains will be able to borrow the security from it and pay Cosmos Hub validators.
Despite the rejection of the Cosmos 2.0 whitepaper, the team continues to work on the upgrades mentioned in it. The other improvements in tokenomics will be introduced as a separate proposal to the Cosmos community.
The first week of February witnessed a technical bullish breakout in ATOM’s price. If buyers continue to accumulate, there’s a solid chance of a short-to-medium trade rally.
The Interchain Security implementation remains the most crucial breakthrough in accruing value to ATOM holders. The feature will allow independent blockchains, called consumer chains in the Cosmos ecosystem, to rent security from the validators of Cosmos Hub. Existing Cosmos SDK-based blockchains can choose to be consumer chains too. This will bring additional staking rewards for ATOM holders.
The Cosmos team concluded its developers campaign called “Game of Chains” to test consumer chains before rolling out the mainnet version of Interchain Security. They will implement
Read more on cointelegraph.com
