ATOM Slides 4% As Founder Pushes For Cosmos Fork After Price Inflation

Following the passing of a community vote to reduce inflation to 10% on Cosmos Hub's generational token ATOM, founder Jay Kwon has called for a hard fork of the cryptocurrency.

Differences in the cosmos community have seen the price of ATOM slide by 4% in the past day, with a current price of $9.29, according to CoinGecko.

Proposition 848 passed with 41.1 percent of the net vote, 31.9 percent against, 6.6 percent in favor and 20.4 percent of the vote. The proposal would reduce the ATM inflation rate from 14 percent to a maximum of 10 percent, reducing the APR from 19 percent to around 13.4 percent.

Proponents of the proposal argued that inflation was higher than necessary to maintain network security, and that verifiers would remain “broken or profitable” at a maximum of 10% inflation, arguing that raising their commissions to cover operating costs was an option. .

In a post on Twitter, he called on the community to “coordinate diversity”, suggesting that new network AtomOne be cut off from Cosmos by a new ATOM1 token. The proposed new network will support both ATOM and ATOM1.

While 10% of ATOM1's Genesis supply will be set aside for “various purposes,” Genesis' distribution of the remaining 90% of its token supply will be aired, “judged by alignment based on voting activity,” Proposition 848 said. .

Although the fork will use much of the Gaia architecture employed by the Cosmos Hub, it will contain a maximum of 20% inflation, and will include a modified governance mechanism that requires proposals to pass two-thirds of the threshold to achieve quorum.