Journalist
Posted:
- Co-founder Jae Kwon has announced his intentions to fork the chain.
- This has brought about bearish sentiments that have led to low demand for ATOM.
Cosmos [ATOM] co-founder Jae Kwon has announced his decision to fork the Cosmos network to create a new chain called AtomOne.
Now listen up Cosmonauts. Despite our voting NWV #848 has ended up passing, something that isn’t too surprising (though it would be good to know whether the later votes came from newly purchased atoms) @cosmos @Allinbits_inc #raptureparty #atomone
Now let’s coordinate a split.
— antechristus #343 (@jaekwon) November 25, 2023
This decision comes in response to the recent governance proposal that reduced ATOM’s inflation rate from around 14% to 10% and its staking Annual Percentage Rate (APR) from around 19% to about 13.4%.
Regarded as the most controversial proposal in Cosmos’ four-year history, proposal #848 sought to “reduce inflation, provide better incentives for staking, and improve (the) security of the network.”
The proposal narrowly gained approval with 41.1% of votes in favor, surpassing the 38.5% of votes against. This marked the highest-ever voter turnout in the Cosmos ecosystem.
Mr. Kwon’s big plans
According to a document authored by Kwon, the proposed AtomOne be built upon Gaia. This is the same underlying software that powers the Cosmos Hub. AtomOne would, however, operate independently with its own governance plan and development team.
“The vision behind this AtomOne fork is to be an alternative minimal fork of Gaia (“cosmoshub4”) running alongside Gaia to prepare for all contingencies and also to operate as a political party base in relation to Gaia. We strive to complement the broader Cosmos ecosystem while introducing innovative solutions and perspectives,” the document stated.
Kwon noted further that his proposed fork would function as a political base aligning with the values of Gaia. It intends to achieve this by aiming for intelligent distribution of the ATOM1 token through the governance decisions to be made.
Additionally, he mentioned that upon launching the ATOM1 token, most of the genesis supply would be allocated to individuals who cast their votes in opposition to proposal #848. Those who voted in favor of the proposal would have their allocation “slashed.”
Investors shun ATOM
The discussions around Cosmos during the weekend caused ATOM to attempt a crossover above the $10 price level. However, with bearish sentiments making a re-entrance, the token has shed some of its weekend gains.
At press time, ATOM exchanged hands at $9.11, according to data from CoinMarketCap.
How much are 1,10,100 ATOMs worth today?
AMBCrypto found that token accumulation amongst daily traders has slowed since Kwon announced his decision to fork Cosmos.
As of this writing, ATOM’s key momentum indicators trended downward, signaling that traders in the alt’s spot market have preferred to sell their holdings rather than purchase more.
Source: ATOM/USDT on TradingView