ATOM’s Price Crisis: A Call for Economic Overhaul 🚨

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It is a truth universally acknowledged, that a blockchain in possession of a good network, must be in want of economic reform.

The Cosmos SDK, that versatile framework, has become the darling of many a blockchain project, both grand and humble. Indeed, it is said that even the most esteemed Fortune 500 enterprises have taken notice, though one might question their motives with a raised eyebrow. 🤔

Why Cosmos Wants to Overhaul ATOM’s Design

However, as the software is open source, those users may deploy their own sovereign chains, without remitting fees or royalties to the Cosmos Hub. A most inconvenient arrangement for the Hub’s coffers, to be sure. 😅

Thus, these institutional builders may wield the network’s core technology without so much as a nod to ATOM. A most audacious feat, if one were to ignore the financial implications. 💸

Request for Proposals: ATOM Tokenomics Research ⚛️

A tokenomics RFP invites qualified research firms to submit proposals to provide data-driven research supporting a redesign of ATOM’s economic model.

Applications are due January 15. Read more:

– Cosmos Hub ⚛️ (@cosmoshub) December 12, 2025

The blockchain development firm seeks to change this by promoting a new “revenue-driven model.” A most prudent approach, one might say, to ensure the Hub’s coffers are not left wanting. 🧠

“The goal of this research effort is not to design a new tokenomic model from first-principles, but rather to provide research and design support for a revenue-driven model that synergizes various sources of potential ATOM revenue with updates to ATOM’s supply dynamics and inflation schedule. Ultimately, ATOM’s utility will be driven by these fees, either in the form of ATOM buybacks, ATOM staking rewards, other mechanisms, or some combination thereof,” it stated.

Meanwhile, the initiative also marks a strategic pivot for the Cosmos ecosystem. A most curious turn, to be sure, as the once-vaunted Interchain Security now lies in tatters. 🧨

Cosmos Labs acknowledged that Interchain Security, the shared security framework once promoted as ATOM’s primary value driver, “failed to find product market fit.” A most lamentable turn of events, as it were. 😅

“Interchain Security is in the process of being deprecated, and the Hub’s economic architecture remains relatively detached from the broader activity of the Cosmos ecosystem. It lacks a comprehensive fee model today, outside of transaction fees occurring on the network,” the firm explained.

Consequently, this redesign effort points toward economic models closer to enterprise software norms, including consumption-based fees tied to usage rather than security rent. A most modern approach, if one can ignore the irony. 🤡

However, implementing any proposal would face significant political constraints. Any material changes must be approved by the Cosmos Hub DAO, which has historically resisted measures viewed as centralizing. A most delicate dance, to be sure. 🕺

Cosmos Labs referenced a previous proposal to reduce inflation that passed by a narrow 3% margin. The decision triggered a sharp withdrawal of staked assets, illustrating how sensitive token economics remain within the community. A most volatile affair, indeed. 🌀

Considering this, the firm stated that any successful proposal outlines potential revenue pathways, analyzes supply-side constraints, and offers practical guidance aligned with stakeholder interests. The RFP closes Jan. 15. A most urgent matter, if one is to avoid further embarrassment. 🚀

Meanwhile, this move comes as ATOM has fallen nearly 76% this year to a five-year low of around $2.1. A most disheartening decline, reflecting a deep stress across the ecosystem, even as the Cosmos software stack has gained wider traction among blockchain developers and institutional pilots. A paradox, if ever there was one. 🤯

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2025-12-14 20:47