{"id":201230,"date":"2023-11-27T10:08:42","date_gmt":"2023-11-27T04:38:42","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=201230"},"modified":"2023-11-27T10:08:42","modified_gmt":"2023-11-27T04:38:42","slug":"cosmos-co-founder-wants-to-fork-the-network-after-contentious-proposal-passes-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/cosmos-co-founder-wants-to-fork-the-network-after-contentious-proposal-passes-crypto-news\/","title":{"rendered":"Cosmos Co-Founder Wants To Fork The Network After Contentious Proposal Passes – Crypto News"},"content":{"rendered":"
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Jae Kwon, the founder of Cosmos, is rallying community members to fork the network.<\/p>\n

On Nov. 25, Kwon urged<\/a> his followers to join forces and organize a \u201csplit\u201d in response to Cosmos governance passing a proposal<\/a> to reduce inflation from staking rewards for its ATOM token.<\/p>\n

Cosmos uses a dynamic inflation mechanism that increases ATOM\u2019s supply by between 10% and 20% depending on how many tokens are staked. With 65.7% of ATOM staked at present, inflation is growing at a rate of 0.45% every year.<\/p>\n

Per proposal 848, ATOM inflation will be capped at 10%, reducing inflation from its current rate of 14.24%. Staking rewards will also decrease from an annual percentage yield (APY) of 19% to 13.4%.<\/p>\n

\u201cWith ATOM\u2019s historical inflation being much higher relative to its peers, this has not only harmed the perception of ATOM\u2019s monetary premium, but it has also led to constant sell pressure that has hurt its price performance,\u201d the proposal said.<\/p>\n

The proposal passed with 41.1% support, compared to 31.9% votes against, 6.6% vetoes, and 20.4% abstaining. Nearly three-quarters of ATOM\u2019s supply was mobilized for voting, with 80% of validators participating. Validators backed the proposal with 54.5% support, while 95% of other tokenholders supported the measures.<\/p>\n

However, major actors within the Cosmos ecosystem are unhappy with the result.<\/p>\n

\u201cDespite our voting\u2026 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),\u201d tweeted Kwon. \u201cNow let’s coordinate a split.\u201d<\/p>\n

Cosmos infighting<\/h2>\n

Kwon\u2019s efforts to fork the network follow long-term infighting within the Cosmos ecosystem. John Galt, a Cosmos-focussed crypto influencer, commented<\/a> that a chain split could \u201cresolve years of political tension\u201d plaguing the Cosmos ecosystem.<\/p>\n

Kwon said the new network, informally dubbed AtomOne<\/a>, would fork the Cosmoshub4 code to ensure it runs the latest Cosmos software, also advocating support for the fork to support ATOM. \u201cInstead of mass-selling ATOM and collapsing it all, we allow participation from ATOM, but [tokenomics] can be improved,\u201d he said.<\/p>\n

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