• Cosmos ATOM 2.0 white paper proposed changes to Cosmos’s design, including a tokenomics upgrade
• Interchain security will enhance the value accrual position of ATOM as a modular chain
• ATOM’s price had a technical bullish breakout in the first week of February leading to potential short-term rally
Cosmos ATOM 2.0 White Paper Proposal
In September 2022, Interchain Foundation, the team behind the development of Cosmos, introduced the Cosmos ATOM 2.0 white paper. This document proposed significant changes to Cosmos’s design and tokenomics upgrade to fund ecosystem development and reduce inflation. Despite community members wanting to take a measured approach towards each feature listed in this proposal, it failed due to its enormity.
Interchain Security for Enhanced Value Accrual Position
Interchain security remains an important breakthrough in accruing more value to ATOM holders. This feature will allow independent blockchains, called consumer chains in the Cosmos ecosystem, to rent security from validators of the Cosmos hub and receive staking rewards for ATOM holders. The team has concluded their developer’s “Game of Chains” campaign and are ready to roll out interchain security on mainnet with their lambda upgrade (v9) sometime in February.
Technical Bullish Breakout Leads To Potential Short-Term Rally
The first week of February witnessed a technical bullish breakout in ATOM’s price leading investors believe that there is potential for short-to-medium trade rally if buyers continue accumulating it further.
Does The Ecosystem Have Strong Enough Fundamentals To Support Further Upside?
ATOM gained 50% in January and while crypto markets remain bullish for some time, it is important to know whether or not the fundamentals of the Cosmos ecosystem support further upside? While individual improvements like interchain security may help improve overall value accrual position for ATOK holders, there are still various other features mentioned in the white paper that need approval from community members before they can be implemented into process.
Conclusion
Despite failure of passing Cosmo 2.0 white paper proposal due its enormity initially, InterChain Foundation continues working on various upgrades mentioned in it separately before taking approval from community members which could eventually lead to long term sustainability for Cosmos’ ecosystem growth as well as its current 50% monthly rally on ATOK prices .