COSMOVERSE and the new power of ATOM 2.0

By Valentin Santamaria

As much as I have been thinking about the price of the ATOM token for some time, I never found a reason for organic growth through the use or need of ATOM in its own network, something frightening for its viability and at least similar to what is a speculative bubble, so I moved away from ATOM and focused all my efforts on TERRA, as you can see we all made mistakes, and I was the first one. The main thing is to have the humility to recognize it, the courage to face it and the desire to overcome to understand the point of failure.

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Knowing that the potential of COSMOS is to have a level of flexible modularity and a consensus engine SDK – Tendermint, which allows to easily build on this network and makes it very attractive to entrepreneurs and developers. Moving away from COSMOS was rather a logical decision based on the lack of vision that COSMOS gave me about its business model and the fit of its ATOM token in it, since the applications that run on COSMOS (Osmosis, DyDx, Cronos, etc..) run their own validators, competing directly with Cosmos, since the transaction fees are paid with their native tokens (OSMO, DyDx, CRO) and not with those of the network where they have been created (ATOM).

At this point, the unanswered question hovering over my head generated mixed feelings, as I could not detect the reason why someone needs an ATOM. To understand it better think about Ethereum, nothing escapes its power and business model, which revolves around ETH. All interaction with applications built on its network require payment of fees with ETH, and this is a clear example of the first basic use case that a token has “BE A MONETARY ASSET IN ITS NETWORK”.

At the Cosmoverse conference it was clear that COSMOS 2.0 is going to change many things, (improving at least this aspect, which for me is critical) through an ambitious roadmap, with a timing of 3 years, starting with the implementation of Interchain Security, to give the option for applications on Cosmos to “rent” security from the Cosmos Hub and that 25% of the fee charged will go as an extra incentive for ATOM staking participants. Next, and since ATOM’s current monetary policy is similar to that of pre-merger ETH, the liquid stacking feature will be incorporated, thus eliminating the time friction of the 23-26 days to get your ATOM tokens back from traditional staking, giving immediate liquidity and speed to both the community and creators in their transactions. Finally will come the Interchain Scheduler (a solution to first alleviate and then eliminate the problems of MEV) and Interchain Allocator, a kind of gitcoin for the COSMOS ecosystem, which allows participants to lock their ATOMs in the DAO, giving them the power to vote on the DAO and be rewarded, thus applying a more efficient and real treasury management.

COSMOVERSE Summary and alpha

Circle to build consumer chain in COSMOS by 2023

Mesh security, is going to be a revolution in terms of security/consensus for Cosmos, it will allow the security that exists in some networks to be increased through the validators that exist in other networks, also involving governance in it. Undoubtedly a challenge due to its technical complexity, but something quite necessary to balance the forces of good and evil.

Evmos and the new EVM HUB, featuring Evmos native liquid stacking, allowing IBC transfers to be executed directly with dApps, something unheard of so far. It seems like a simple in-app improvement over COSMOS, but it simplifies the ETH-IBM connection outside of the blockchain and makes all Dapps compatible and interoperable with IBC, without having to be in Cosmos, a sweet treat for dApp developers.

In Quicksilver not much innovation was seen, in this new era of COSMOS its improvement comes from the more conciliatory side, now allowing you to choose which validator you want to delegate when using its liquid stacking, and therefore also delegate your voting power for governance . The hottest and most speculative note came when they commented that they will be in charge of working so that the multiple airdrops that are coming in COSMOS can also be received by QuickSilver users.

Very powerful news that came from the hand of Kado (Evmosmoney), already offering an entry/exit ramp from Fiat to JUNO, allowing access to USDC directly through a credit card or a bank transfer.

He pleasantly surprised WYND DAO (https://app.wynddao.com/) with an innovative, multi-protocol DAO that harnesses the best of DeFi to finance and enhance positive environmental impact in the world. Based on the WYND token and launched on JUNO at the end of May 2022, WYND DAO is building an innovative governance model to provide intelligent treasury management, where 25% of fees generated from applications running on JUNO will go to an Environmental DAO that will invest in projects that lead environmental improvement actions. As in any DAO, delegating WYND tokens will give you a say in the future of this project, a unique Cosmos project.

Incredibly the maturity that Celestia already shows thanks to its value proposition on modular blockchains, the technical improvements of COSMOS 2.0 elevate Celestina’s value narrative, pivoting from a social movement to a global social and technological movement. Modular blockchains empower people and make it easy for communities to become sovereign, allowing them to self-organize independently.

CONCLUSION

It seems that the largest proportion of valuable projects have been built and are being built in Cosmos, we are in an irrational moment of accumulation of ATOM due to a market sentiment that indicates and motivates us to do the opposite, but doing things differently always yields different results, even more so when those actions are well founded. If ATOM 2.0 is approved, 10 million tokens per month will be issued, punishing the token with a 3% monthly inflation, and therefore sinking its price even more. This is where your belief in COSMOS needs to be stronger than ever, so you can do your homework well and then give the ATOM token time for the new tokenomic timeline to balance out, network improvements to be applied and all the alpha viso get together, and that way, magic is done.

Other interesting projects to follow closely:

https://dfract.lum.network/