ATOM, the primary cryptocurrency of Cosmos Hub, is experiencing mild declines following a recent call by Cosmos founder Jae Kwon for a proposal of a blockchain split. Kwon’s suggestion to fork the blockchain has been viewed by some as a positive development for investors. One observer even sees the potential hard fork as a bullish outcome for the investor community.
On Sunday, Kwon suggested coordinating a split following the Cosmos community’s decision to approve a proposal lowering ATOM’s inflation from 14% to 10%.
The Cosmos Hub serves as an intermediary for independent blockchains within the Cosmos network. ATOM is the cryptocurrency driving the Cosmos ecosystem, designed for scalability and interoperability among blockchains.
Proposal 848, approved with 41.1% support for the reduction and 31.9% against, argued that ATOM’s high inflation was excessive for security and discouraged its use in decentralized finance.
The approved change is expected to decrease ATOM’s annualized staking yield from around 19% to approximately 13.4%. Staking involves locking coins in a blockchain to earn rewards.
Kwon referred to the hard fork as AtomOne, which would fork the Cosmos Hub, calling for a final plan whereby the forked chain would support the ATOM token along with the native ATOM1.
“I believe that the final plan should include an integration of $ATOM and $ATMO/$ATOM1 so that instead of mass selling $ATOM and collapsing it all, we allow participation from $ATOM, but what is in the README can be improved. Tokenomics people take a shot,” Kwon said on X.
Also Read: Cosmos Introduces Liquid Staking For ATOM In Latest Upgrade
