- ATOM’s redesign aims to capture value from enterprise Cosmos SDK adoption, expanding token utility beyond staking rewards.
- Three-phase plan audits usage, models supply-demand dynamics, and engages the community for smooth governance implementation.
- Changes target sustainable inflation, stakeholder alignment, and network security while linking ATOM to ecosystem growth.
Cosmos is aiming to turn its native token, ATOM, into a direct beneficiary of the booming enterprise use of its blockchain tools. Its Cosmos SDK already powers major projects like Ondo Finance, Babylon, dYdX, Stable, Cronos, Celestia, and Injective.
However, ATOM has not yet benefited from these network effects. Hence, Cosmos Labs issued a Request for Proposals (RFP) seeking data-driven research to redesign ATOM’s economic model, with proposals due by January 15.
The initiative targets tokenomics reform by tying ATOM’s value more closely to enterprise adoption. RoboMcGobo, posting on the Cosmos Hub forum, explained, “The redesigned model will align token incentives with Cosmos’ new enterprise-facing roadmap, ensuring sustainable demand, controlled inflation, and aligned stakeholder interests.”
This implies that ATOM may benefit from businesses using the Cosmos SDK in addition to on-chain activity like transaction fees. As a result, ATOM may go beyond staking and begin to represent the success and broader activity of the entire Cosmos ecosystem.
Redesigning ATOM’s Economic Model
The Cosmos Hub, the main blockchain of the Cosmos network, currently adjusts ATOM’s inflation between 7% and 10% depending on staking levels. Around 280 million ATOM tokens are staked across 180 validators, with network control fairly concentrated.
However, Interchain Security, once a core revenue driver, is being phased out, leaving limited mechanisms to capture ecosystem growth. Moreover, historical governance events, such as Proposal 848, show that even minor inflation changes can significantly affect staking behavior and ATOM sales.
The tokenomics redesign will involve three phases. Phase one focuses on auditing ATOM’s current usage, stakeholder behavior, and comparative analysis with networks like Avalanche and ZKSync.
Phase two will model token supply, demand, and inflation under multiple scenarios, while proposing mitigations for potential impacts on validators and stakers. Phase three emphasizes community engagement, ensuring governance proposals pass smoothly to implement the changes.
Enterprise Adoption Drives ATOM Utility
With more businesses and governments investigating blockchain technology, Cosmos is acting at the ideal moment. The Cosmos SDK is already being used or tested by important entities, including Fortune 500 companies and large banks.
Cosmos expects that by converting this adoption into tangible value, ATOM will directly profit from the expansion of the ecosystem. The proposed redesign also intends to make the token more dependable and sustainable, rewarding holders and preserving network security while controlling inflation.
