The Implications of ATOM 2.0

• The ATOM 2.0 proposal aims to transition the Cosmos Hub into its new role, facilitating the expansion of a resilient interchain economy while driving value to the Cosmos Hub.
• Sitting at the heart of ATOM 2.0, Interchain Security allows the Cosmos Ecosystem to scale and is the Hub’s key to meaningful revenue generation.
• The Interchain Scheduler is an on-chain marketplace for tokenized block space that uses Interchain Security to scale the Cosmos Hub’s revenue with the growth of the Cosmos Ecosystem.
• The Interchain Allocator aims to rapidly expand the economic activity within the Cosmos Ecosystem and make ATOM the index token of the Interchain Economy.
• The new monetary regime removes exponential inflation by introducing liquid staking and new revenue streams to offset the phase-out of the security subsidy.

The Cosmos Hub has achieved its original goal of bootstrapping the internet of blockchains, an ecosystem of interoperable application-specific blockchains. Over 50 IBC-enabled blockchains within the Cosmos Ecosystem have moved billions of dollars across chains in millions of executed transactions. However, the Cosmos Hub does not have a clear revenue model, nor is it currently positioned to scale with the growth of the broader ecosystem. Additionally, its first-generation tokenomics limit ATOM’s ability to serve as the proliferated reserve currency of the Cosmos Ecosystem.

The ATOM 2.0 proposal aims to transition the Cosmos Hub into its new role, facilitating the expansion of a resilient interchain economy. The Cosmos Hub’s most valuable quality is its high-performant validator set, making it a crucial player in Interchain Security which will scale the Cosmos Ecosystem. The proposal also posits a path to sustainable revenue generation that expands the Cosmos Hub’s role within a developing ecosystem.