1/ ATOM 2.0 is here.
If you ain't got time to sift through the 27 pages long whitepaper (though by all means, you should), worry not - Cosmos Guides is here to dumb it down and ELI5!
LFG, #Cosmonauts 🧵⬇️
If you ain't got time to sift through the 27 pages long whitepaper (though by all means, you should), worry not - Cosmos Guides is here to dumb it down and ELI5!
LFG, #Cosmonauts 🧵⬇️
2/ The Cosmos Hub has successfully initiated the Internet of Blockchains, achieving its early goals.
We've got a software stack used to build and connect app-chains, meaning: Cosmos SDK + IBC + Tendermint consensus.
We've got a software stack used to build and connect app-chains, meaning: Cosmos SDK + IBC + Tendermint consensus.
3/ $ATOM was left without a purpose, serving more as a cumulated index of Cosmos ecosystem projects that people would speculate on.
Utility practically 0 since you could build your own Cosmos project and never need to touch $ATOM or the Cosmos Hub.
That was then.
Utility practically 0 since you could build your own Cosmos project and never need to touch $ATOM or the Cosmos Hub.
That was then.
4/ Cosmos 2.0 brings on the winds of change, as ANNed by @buchmanster and @zmanian at #Cosmoverse.
-> Interchain Security
-> Liquid Staking
-> Interchain Scheduler
-> Interchain Allocator
-> ATOM Issuance
Some were common knowledge, others a surprise.
Let's ELI5 it.
-> Interchain Security
-> Liquid Staking
-> Interchain Scheduler
-> Interchain Allocator
-> ATOM Issuance
Some were common knowledge, others a surprise.
Let's ELI5 it.
5/ Interchain Security P1.
Say you want to build a Cosmos project. Naturally, as a new proof-of-stake blockchain network, you need validators. Getting validators is hard work, especially if you're new in the Cosmos fam. There's lots of business development and marketing needed.
Say you want to build a Cosmos project. Naturally, as a new proof-of-stake blockchain network, you need validators. Getting validators is hard work, especially if you're new in the Cosmos fam. There's lots of business development and marketing needed.
6/ Interchain Security P2.
That's fine. The @CosmosHub already has tons of validators. New projects, dubbed consumer chains, will rent security from these validators.
Projects pay rent with token inflation and fees.
$ATOM stakers get $ATOM and new tokens.
That's fine. The @CosmosHub already has tons of validators. New projects, dubbed consumer chains, will rent security from these validators.
Projects pay rent with token inflation and fees.
$ATOM stakers get $ATOM and new tokens.
7/ Liquid Staking.
When you stake, your assets get locked e.g. you can't use them to ape into anything else. With liquid staking, you get a representative asset that you can use to ape into anything else.
When you stake, your assets get locked e.g. you can't use them to ape into anything else. With liquid staking, you get a representative asset that you can use to ape into anything else.
8/ Interchain Scheduler P1.
We compete for block space. If you see a transaction that would impact an asset's price, you can pay higher fees to cut in line and make money. But protocols don't make any $.
The Scheduler essentially sells the right to front-run transactions.
We compete for block space. If you see a transaction that would impact an asset's price, you can pay higher fees to cut in line and make money. But protocols don't make any $.
The Scheduler essentially sells the right to front-run transactions.
9/ Interchain Scheduler P2.
In other words, you 'bribe' the Scheduler for your transaction to get in first. These 'official bribes' lead to more transparency and are used to accrue value to the protocol instead.
In other words, you 'bribe' the Scheduler for your transaction to get in first. These 'official bribes' lead to more transparency and are used to accrue value to the protocol instead.
10/ Interchain Allocator P1.
The Cosmos Hub is now a sustainable service provider that makes money through the aforementioned products.
How will this money be used? Part of it will be naturally funnelled to $ATOM. But the rest? It'll be managed by the Allocator.
The Cosmos Hub is now a sustainable service provider that makes money through the aforementioned products.
How will this money be used? Part of it will be naturally funnelled to $ATOM. But the rest? It'll be managed by the Allocator.
11/ Interchain Allocator P2.
The Cosmos Hub community gets to vote on who and what is funded.
The Allocator's mandate is simple: accelerate app-chain development, accrue value and demand to $ATOM, assure sustainability, and grow the Interchain.
The Cosmos Hub community gets to vote on who and what is funded.
The Allocator's mandate is simple: accelerate app-chain development, accrue value and demand to $ATOM, assure sustainability, and grow the Interchain.
12/ $ATOM Issuance.
$ATOM has infinite inflation, ey? Not for long. The new doc suggests a system that'll fix $ATOM printing to 300k monthly, to then be replaced by revenue from Interchain Security, Scheduler, Allocator, and fees. Not happening all at once, but in due time.
$ATOM has infinite inflation, ey? Not for long. The new doc suggests a system that'll fix $ATOM printing to 300k monthly, to then be replaced by revenue from Interchain Security, Scheduler, Allocator, and fees. Not happening all at once, but in due time.
13/ Social Coordination.
Projects and stakeholders are incentivised to be active on the Cosmos Hub, get engaged in governance, and vote on proposals as the Hub is anointed with new strength.
Projects and stakeholders are incentivised to be active on the Cosmos Hub, get engaged in governance, and vote on proposals as the Hub is anointed with new strength.
14/ Still too techy? Fine. Here's a shorter breakdown.
If value of Cosmos Ecosystem grows -> $ATOM grows.
If $ATOM grows -> Treasury of Cosmos Hub grows.
If Treasury of Cosmos Hub grows -> Value of Cosmos Ecosystem grows.
If value of Cosmos Ecosystem grows -> $ATOM grows.
If $ATOM grows -> Treasury of Cosmos Hub grows.
If Treasury of Cosmos Hub grows -> Value of Cosmos Ecosystem grows.
15/ Mind that this is a very high-level conceptual breakdown of Cosmos 2.0 that does not fully capture its scope, adjacent services, and inner workings of the updates. It's strictly meant to provide an overview of what's coming to non-Cosmos natives.
16/ I'll soon publish in-depth threads on the ICS, IS, IA, and $ATOM's new value accrual & utility.
Liked this $ATOM 2.0 breakdown? Please engage with this thread to support my work.
Liked this $ATOM 2.0 breakdown? Please engage with this thread to support my work.
https://twitter.com/CosmosGuides/status/1567142276014415873
P.S. Hats off to @zmanian @jackzampolin @hxrts @buchmanster @JTremback @UditVira @max_einhorn @ssaintleger @youssef_amrani @davidfeiock for spearheading ATOM 2.0 and co-authoring the new whitepaper. We wouldn't be here without these total chads!
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