Cosmos founders and prominent associates of the Cosmos platform collaborated to create the 27-page whitepaper, officially named ‘The Cosmos Hub.’ This release is noteworthy for recommending the adoption of numerous new features to the larger Cosmos platform.
The first blockchain created on this platform was ‘the Hub,’ which primarily acted as a bridge across several linked blockchains. Its token, ATOM, is used for processing transactions.
According to the amount of the available token that is staked, the token’s issuance now ranges from 20% at sub-standard to 7% at an optimal level. While the entire token distribution was roughly 214 million three years ago, data specifies that there are presently over 292.5 million ATOM tokens in circulation.
The recent release suggests a new issuance strategy for the platform’s token in two parts. First, a 36-month transitional period would be implemented, during which 10 million tokens would be distributed every month. After that, the issuance rate would gradually drop until it reached the release of 300 thousand tokens per month, essentially lowering the inflationary pressures of ATOM to 0.1%.
Thus, over time, the token’s issuance would switch from an enormous to a constant level. According to developers, this approach will allow more interoperability between the blockchains. Overall, the goal is to maintain the security provided by the initial system while finding healthy coordination between community development and interchain engagement.
The decision to create ‘the Hub’ eventually rests with token holders, who can decide whether to support or oppose any alterations to the platform. Even though the suggestion has only been published on the Cosmos Hub governance platform for a short period, the feedback has been largely favourable.
Also, it’s undeniable that these recent capabilities will make the token more useful and solidify its footing as the top coin on the platform.
