ATOM 2.0 On-chain Voting Goes Live

Token holders will have two weeks to vote on the latest proposal


Source: Shutterstock


Cosmos revamped its latest roadmap to position its native token, ATOM, as the preferred collateral within its ecosystem.

After a month of deliberation and in the latest instance of the growing business of digital assets activism — the proposal, ATOM 2.0, has gone live for on-chain voting.

Community members have two weeks to vote on the Cosmos proposal. Quorum is set at 40%, lower than the typical pass rate of 50%. Voter turnout was around 7% at the time of publication, with over 90% ratifying the proposal.

ATOM 2.0 is a new vision piece and “counterpart” to the original 2017 Cosmos white paper that focuses on inter-blockchain communication (IBC), interchain security and liquid staking. It “marks the transition to the next phase of the Cosmos Hub as an infrastructure platform,” according to the proposal’s authors. 

The white paper was first unveiled in late September at Cosmoverse — the network’s annual conference — and has since been updated twice to address community concerns.

Disagreements on ATOM issuance

The main point of consternation from Cosmos token holders surrounds ATOM token issuance.

In an earlier interview with Blockworks, Zaki Manian — the co-founder of Sommelier and a key member of the Cosmos ecosystem — said that the first version of the white paper proposed an initial large mint of ATOM for a new treasury, followed by a drop in ATOM staking rewards.

Community members wanted less front-loading of the creation of ATOM. 

The proposal, as such, was adjusted so only 4 million ATOMs will be minted into the community pool — with 10 tentative mints of ATOM into the treasury to follow, at the discretion of ATOM owners. 

These disagreements also led Jae Kwon, the co-founder of Cosmos who drifted away from the blockchain in 2020, to reemerge with a counterproposal. 

Sunny Aggarwal, co-founder of Osmosis Labs — a decentralized exchange protocol on Cosmos — told Blockworks that “ATOM 2.0 proposes inflation on the token, and it’s not yet fully clear on how [ATOM 2.0] is going to be governed and how it will be spent, and I think Jae’s whole point is that it needs to be more clear.”

In Kwon’s counterproposal, ATOM One, he wanted to create a second token, PHOTON, to be the main asset in the Cosmos ecosystem.

“ATOM 2.0 is trying to push for ATOM to be a reserve, monetary asset within the Cosmos ecosystem, while ATOM One is saying ATOM should remain conservative and just be the staking and governance token of the cosmos hub and actually create a second token called PHOTON that can be the money token,” Aggarwal said. 

Although the outcome of the vote remains up in the air, Aggarwal said, “tensions [are] quite high,” adding that there’s a “need for more synthesis first.”

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png


ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.


“OpenFi” aims to unbundle to take the “account” out of bank account


And a look into the newest name on the Trump ticket: Sen. JD Vance


Plus, Imran Khan’s intriguing experiment on the speeds of crypto onramps


The SEC has signaled a timeline to issuers that could lead to a July 23 launch for the ETH funds, people close to the process told Blockworks


PayPal has unequivocally made a name for itself as a crypto adopter among fintech giants