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Why is ATOM on the rise? – Crypto News Current

has shown signs of strength since June while the rest of the market has faltered. The anticipation ATOM 2.0 could show up in four days, which could fuel prices.

The central theses

  • Despite the overall market weakness, ATOM is still up 152% from the June lows.
  • The ATOM 2.0 whitepaper is scheduled to be released on the first day of Cosmoverse, September 26th.
  • Cosmos community members believe that ATOM 2.0 will overhaul ATOM’s inflationary tokenomics.

ATOM 2.0 details will be revealed in four days during the Cosmoverse. Community members expect the token’s inflationary monetary system to be fundamentally overhauled.

ATOM 2.0 on the horizon

Great things are ahead for the Cosmos ecosystem.

ATOM is currently trading at $14.7, up 10.3% on the day. While most major cryptocurrenciesincluding , are reviving their summer lows, the Cosmos token is still up 152% since June 19.

The coin’s strength in the face of the broader downturn could be due to rumors surrounding ATOM 2.0, details of which will be released during an upcoming Cosmos conference. Taking place September 26-28 in Medellín, Colombia, Cosmoverse will feature speakers from Cosmos co-founder Ethan Buchman and Osmosis Labs co-founder Sunny Aggarwal, among others.

Details surrounding ATOM 2.0 will be released on the first day of the conference, with Buchman unveiling the token’s whitepaper at 14:30 UTC and sommelier co-founder Zaki Manian addressing coin’s revised tokenomics at 15:40 UTC in a talk titled “$1,000 ATOM LFG.” There will also be a panel on ATOM 2.0 on the third day at 21:30 UTC.

tokenomics

Cosmos is a decentralized network of independent blockchains with ATOM as the leading token. the internetBlockchain Communication Protocol (IBC) allows users to move seamlessly from one blockchain to another.

At the time of writing, there are 42 different IBC-connected blockchains, including the Cosmos Hub, the decentralized exchange Osmos, the smart contract platform Juno, the EVM-compatible chain Evmos, and the privacy blockchain Secret Network. According to the Cosmos website, the cumulative market capitalization of the network currently at $9.72 billion, slightly below the $11.4 billion of Solana.

The ATOM token is used to secure the Cosmos Hub. Not to be confused with the broader Cosmos ecosystem, the Cosmos Hub is a blockchain specifically designed to connect all other blockchains on the network.

The Keplr dashboard shows that ATOM staking rewards currently range from 15.19% to 18.99% depending on which validator you delegate to; the return is composed of ATOM emissions and Cosmos Hub transaction fees.

However, ATOM has been criticized for its inflationary tokenomics. The coin’s inflation rate is dependent on ATOM staking percentages. According to Messari, if more than two-thirds of the supply is staked, the inflation rate gradually decreases until it reaches 7%; less than two-thirds, and ATOM can be an annual inflation of up to 20%.

In comparison, Ethereum’s inflation rate currently stands at 0.19%; Even before the blockchain was upgraded to Proof-of-Stake, the token supply was increasing by about 4.62% annually.

Prominent members of the Cosmos community have speculated that ATOM 2.0 will fix the coin’s inflation rate by introducing a burning mechanism, or a hard cap on the coin’s total supply. Another positive development for ATOM is the upcoming launch of Interchain Security, which will give the Cosmos Hub the responsibility of securing the entire IBC network, not just the hub itself. Stakers will also receive rewards from other IBC blockchains depending on that their chosen validator set. Interchain Security is scheduled to launch in January 2023.

Source: Crypto News Deutsch

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