Cosmos co-founder Jae Kwon is taking an unexpected direction after years of infighting within the project. He recently announced AtomOne, a “minimal fork” of the Cosmos Hub app, in response to a controversial community decision to reduce inflation of the ATOM token.
Proposal 848, which aims to set the ATOM inflation rate at 10%, down from the previous 14%, was recently approved. However, this move sparked heated debates within the Cosmos community, with Kwon and other members fundamentally differing over the level of inflation necessary to maintain the security of the Cosmos blockchain.
In the long run this is as game of survival, and survival comes from strict adherence to first principles (of security especially).
If you almost lost money as much as your neighbors in the past, then think again before dismissing the cries of someone yelling wolf, especially if…
— antechristus #343 (@jaekwon) November 27, 2023
AtomOne: Jae Kwon’s Response to Tensions in the Cosmos
Proponents of the proposal argue that Cosmos was overdoing security by raising inflation rates to encourage staking. Meanwhile, other layer-1s manage to maintain high staking demand without inflation, impAtomOne: Jae Kwon’s Response to Tensions in the Cosmos negatively affecting ATOM’s price.
Kwon’s response was to create AtomOne, a alternative to Cosmos Hub. However, details regarding the distribution of AtomOne tokens are still unclear, although the token constitution suggests that Proposition 848 voters will receive fewer tokens. Ultimately, AtomOne will also continue to support ATOM tokens.
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Kwon’s decision to pursue a separatist path comes after his vocal opposition to Proposition 848 and reflects growing tension between him and other parts of the Cosmos community. Kwon, who co-founded Cosmos in 2014, has repeatedly accused the community of conspiring against him in the years since.
AtomOne’s GitHub reveals that Kwon began working on the project two weeks ago, coinciding with the start of voting on Proposition 848. As such, at the heart of his criticism is the view that ATOM was never intended to treat as a form Of money. Emphasis on the financial perspectives of the staking token could compromise the security of Cosmos Hub.
“In the long run, this is a game of survival, and survival comes from strict adherence to safety first principles, especially” Kwon wrote.
How does AtomOne influence the ATOM Community?
This split within Cosmos is emblematic of a broader phenomenon observed in crypto projects. Here are where forkers often struggle to regain the social capital and success of their predecessors. Although some forkers profit from these moves, the overall success of these initiatives is still limited.
Furthermore, the current situation of Cosmos and Kwon’s launch of AtomOne represent a critical moment in the project’s history. There are significant implications for the future of the community and the ATOM token itself.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.