<\/p>\n
The Cosmos Hub\u2019s smart contract rollout has hit a dead end, forcing ecosystem builders to rethink their strategies.<\/p>\n
Cosmos<\/a>, a blockchain network focused on interoperability between independent chains, said Wednesday it would scrap plans to bring smart contracts<\/a> to the Cosmos Hub \u2014 just three months after first unveiling the idea \u2014 citing weak developer demand and high implementation costs.<\/p>\n The move marks a retreat from efforts to turn the Hub into a multichain smart contract platform that was intended to support decentralized applications natively, rather than relying on other Cosmos-based chains.<\/p>\n In a July 16 update<\/a> on X, the Cosmos team said it is \u201cpausing the launch of an EVM platform on the Cosmos Hub, citing \u201chigh costs,\u201d potential to \u201cdisrupt the UX for the Hub\u2019s most important users,\u201d and the need for \u201cmassive resources and time to catch up with existing L1 ecosystems.\u201d<\/p>\n Developers who had planned to launch smart contracts on the Hub are now being encouraged to build on other Cosmos SDK-based chains or sovereign EVM chains.<\/p>\n The reversal has reignited long-running frustrations among Cosmos builders. Simon Chadwick, a former contributor to a Cosmos-based project, announced this week that his team was exiting the ecosystem after years of struggling to gain traction.<\/p>\n \u201cIt was like playing on constant hard mode,\u201d he wrote<\/a> on X. \u201cWe just felt stuck.\u201d Chadwick pointed to liquidity, user distribution, and developer support as key challenges for apps building on Cosmos. While he praised Cosmos teams like Neutron and ICL, he said many projects had been \u201cpushing a boulder uphill\u201d since the collapse of Terra in 2022.<\/p>\n \u201cI know we aren’t the only ones leaving, some really top-tier builders went through similar, where they should realistically be top apps in the space by now,\u201d Chadwick added.<\/p>\n Chadwick\u2019s comments triggered a response from the team behind Cosmos. Maghnus Mareneck, co-CEO of Interchain Labs \u2014 the primary engineering organization that maintains the Cosmos Hub \u2014 dismissed<\/a> Chadwick\u2019s critique as \u201cdoomposting,\u201d arguing that any ecosystem faces similar hurdles.<\/p>\n \u201cSame problems, different place,\u201d he said, adding that \u201cwinners win anywhere.\u201d But Chadwick quickly pushed back, saying<\/a> his view was realistic, not cynical: \u201cHow many \u2018winners\u2019 are there on Cosmos?\u201d he asked, pointing out that even well-known projects like Stride haven\u2019t had a major breakthrough yet.<\/p>\n Mareneck told The Defiant that by focusing on onboarding established businesses to Cosmos, the team can \u201caccelerate the traction we’ve seen in 2025, adding Ondo, Ripple, Ripple, Babylon, TAC, and Stable as new Cosmos chains in the IBC ecosystem.\u201d<\/p>\n \u201cThe opportunity here is much larger than launching a new EVM on the Cosmos Hub, which would compete on incentives for the same mercenary builders and users,\u201d he explained.<\/p>\n Cosmos\u2019 decision to halt plans for smart contract support caught several blockchain developers off guard. Stride, the largest liquid staking platform on Cosmos with nearly $20 million in TVL<\/a>, was among those directly affected.<\/p>\n \u201cOn Wednesday, Stride was among the many teams who learned that the ICL was stepping away from its EVM plans for the Hub,\u201d the team said in an X post<\/a>. \u201cUnfortunately, this means the Stride DEX can no longer launch on the Cosmos Hub.\u201d<\/p>\n The team added they are now exploring alternative deployment options, including the possibility of launching Stride DEX \u201con a new chain.\u201d<\/p>\n Stride co-founder Aidan said the team had been working closely with ICL for months and had completed roughly 80% of the DEX<\/a>. \u201cThat said, I don’t hold it against the ICL. I personally think the EVM was the best path to ATOM value accrual, and I wish they could have run this experiment with less collateral damage to Stride. But I understand that they’re also just people trying to make hard decisions under uncertainty,\u201d Aidan added<\/a> in an X post.<\/p>\n Cosmos\u2019 ATOM token has lagged well behind other Layer 1 ecosystems this cycle. Though it still commands a $2.3 billion valuation, the token remains nearly 90% below its all-time high of $44.45.<\/p>\nSame Problems, Different Place<\/h2>\n
Hard Decisions<\/h2>\n