Cosmos Hub Proposed Tokenomics Changes

To kick things off, inflation. Inflation is like that friend who always wants to hang out but never pays for anything. They just show up, eat all your food, and leave without saying thanks. That’s kind of what Cosmos Hub’s current tokenomics are doing they have an infinite supply of tokens being created every year (inflation) with no real plan on how to use them or pay anyone back for their contribution to the ecosystem.

But no need to get all worked up, because in the upcoming version 2.0 release, Cosmos Hub is proposing a new tokenomics model that will finally put an end to this inflationary madness! Instead of having infinite tokens being created every year, they’re going to cap it at a whopping 1 billion tokens per year (still pretty high but better than infinity). And what are they going to do with all these new tokens? Well, they’re going to give them away for free! That’s right , you heard me FREE TOKENS FOR EVERYONE!

But wait, there’s more. In addition to giving away free tokens, Cosmos Hub is also proposing a new way of distributing these tokens. Instead of just handing them out to anyone who wants them (like that friend I mentioned earlier), they’re going to create a system where people have to earn their tokens through staking and validating transactions on the network. This means that only those who are actively contributing to the ecosystem will be rewarded with these new tokens, which is fairer than just giving them away for free (although still not as good as getting paid for your contributions).

So what does all this mean for the price of $ATOM? Well, if you’re a believer in supply and demand economics, then it means that with less inflation and more tokens being earned through staking/validating transactions, there should be an increase in demand for $ATOM as people try to earn these new tokens. This could potentially lead to higher prices for $ATOM, which is good news if you’re a holder or investor.

But let’s not get too excited just yet the proposed tokenomics changes are still being debated and discussed within the Cosmos community, so there’s no guarantee that they will be implemented as planned. And even if they do get implemented, it could take some time for these new tokens to start circulating and having an impact on the price of $ATOM.

But until then, let’s just enjoy the ride and hope for the best (and maybe buy some more $ATOM while it’s still relatively cheap).

SICORPS