Cosmos, a blockchain network focused on interoperability, has published a new “White Paper” through which it proposes a revamped “Cosmos Hub” aimed at enhancing interoperability and security, along with other key changes to its currency, ATOM.
The new Cosmos “White Paper” was released last Monday at the Cosmoverse conference in Medellin, Colombia. The proposed upgrades are still technically in “proposal” status, but the changes are expected to be made to the blockchain on October 3.
Cosmos is an ecosystem of blockchains designed to scale and interoperate with each other. The Cosmos Hub was the first blockchain built on Cosmos, which originally served as an intermediary between other interconnected blockchains.
Cosmos’ currency, ATOM, is used for transactions within the ecosystem. It can also be used for governance and staking purposes.
The changes and decentralization
Under the proposed changes, Cosmos will become more interoperable, more decentralized and more secure.
One of the changes is the reinvention of the Cosmos Hub as an “Interchain” web, which will allow other blockchains in the Cosmos ecosystem to borrow the Hub’s validation center to secure its network, rather than having to find their own.
Billy Rennekamp, the Cosmos Hub’s chief product officer, noted that the proposal would make the Cosmos network “legitimately, defensively decentralized.”
In addition, Interchain Security will allow Cosmos Hub to “host a new class of applications with complementary functionality” such as commercial applications.
Monetary policy
A new issuance model for the ATOM currency is also proposed, with the aim of achieving a better balance between ecosystem growth and inter-chain adoption, “while maintaining the security provided by the original regime”.
The new monetary policy will take place in two phases: ‘transition’ and ‘steady state’. In the transition phase, 10,000,000 ATOMs will be issued in the first month, which will then decrease at a decreasing rate until reaching the steady-state phase 36 months later.
Cosmos co-founder Ethan Buchman said that this new coin issuance model will allow other Cosmos blockchains to interface more with the Cosmos Hub and ATOM.
Furthermore, there are plans to pool even more value into ATOM, allowing for leverage in staking. This will allow ATOM holders to easily unstake ATOM as easily as they can stake it.
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