Cosmos Eyes ATOM Radical Redesign Amid Price Struggles

Cosmos Labs has initiated an urgent search for external economists to research and support a redesign of the ATOM token's economic model. This move is prompted by the digital asset's significant price struggles, having fallen nearly 76% to a five-year low, despite the widespread adoption of the Cosmos SDK framework by enterprises.

The core issue is that while the SDK is popular, sovereign chains built with it do not pay fees or royalties to the Cosmos Hub, meaning institutional users benefit from the technology without holding or interacting with ATOM. Cosmos Labs aims to pivot towards a "revenue-driven model" that monetizes both on-chain and off-chain usage through mechanisms like ATOM buybacks or staking rewards, moving away from the previously promoted Interchain Security, which reportedly "failed to find product market fit."

However, implementing any changes faces significant political hurdles, as the Cosmos Hub DAO historically resists measures perceived as centralizing, evidenced by a previous narrow approval for an inflation reduction that caused staked asset withdrawals. The Request for Proposals (RFP) closes on January 15, and any successful proposal must align with stakeholder interests while addressing supply dynamics and potential revenue pathways.

(Source：BeInCrypto)