Coinspeaker
Cosmos Founder Proposes Chain Split, Native Coin ATOM Posts Immediate Losses
On Sunday, November 26, Cosmos founder Jae Kwon proposed a chain split to community members, following an earlier decision to reduce ATOM’s inflation. The Cosmos community had earlier agreed to take the inflation of ATOM – the native coin of Cosmos Hub – from 14% to 10%. That was after they voted 41.1% in favor of the reduction as opposed to a 31.9% vote against it.
Meanwhile, the decision is expected to negatively impact the annualized staking yield of ATOM. That is from approximately 19% to about 13.4%. And that may be the reason why Kwon and many others not in support of reducing ATOM’s inflation, were not impressed by the outcome of the voting.
Kwon Proposes Hard Fork to Cosmos Community
So, with respect to that, Kwon took to his X page to ask for the immediate coordination of a split. His post on X requested input from community members, as he asked them to put forward their ideas about a split.
We will just fork "cosmoshub4" so it will be the current software, but we will have our own plan and development teams (more decentralized than Gaia) for managing the transition toward a minimal final product. AIB will not be the only participant, all who voted NO is welcome.
— antechristus #343 (@jaekwon) November 25, 2023
Interestingly, Kwon’s new proposal of a hard fork already appears to be resonating with some members of the community. This group of people believe that splitting the blockchain into two could potentially lead to bullish outcomes for investors.
For example, a popular DeFi educator and Head of Strategy at Stride Zone, John Galt, echoes the same sentiments. Galt claims that a fork will be very bullish as it will douse the political tension that has hindered Cosmos Hub from growing for so long. But more than resolving the long years of community infighting, Galt also believes that the hard fork will also lead to the biggest airdrop for ATOM. And, expectedly, that would bring about a massive boost in trading volume for both ATOM and ATOM1 tokens, he concluded.
ATOM Posts Losses
As of writing, ATOM was seen trading 3.31% lower on the day at $9.49, according to CoinMarketCap data. It briefly surpassed the $10 mark over the weekend but could not maintain a foothold above the resistance that continues to be unbreakable for the past three weeks. The weakness, however, may be linked to the flagship cryptocurrency Bitcoin, which also currently finds it hard to cross the $38,000 mark.
Cosmos Founder Proposes Chain Split, Native Coin ATOM Posts Immediate Losses
