ATOM Tokenomics RFP: Blockworks Research Tokenomics Summary

ATOM Tokenomics RFP: Blockworks Research Tokenomics Summary

This post was first published on the Cosmos Forum. Be sure to join in on the conversation on the forum.

As part of the tokenomics grant sponsored by AADAO, Blockworks Research focused on:

  1. Reviewing ATOM’s dynamic inflation model
  2. Aligning ATOM with the inevitable growth of liquid staking
  3. Developing a mechanism to help with validator stake centralization, especially as it relates to the economics behind Replicated Security

You can review our work in these 3 posts here:

  1. Monetary Policy (ATOM’s Supply Schedule)
  2. Introduction of a Dynamic Liquid Staking Tax
  3. Introduction of a Vote Power Tax and Creating a Dynamic CP Tax

In these posts we gave our recommendations for what the parameters of ATOM’s tokenomics should be. While there has been great conversation around these ideas, we believe it is important for the community to have the tools to model out how these changes could impact all Hub stakeholders (and potentially even make their own recommendations if they like our concepts but may disagree with our suggested parameters)!

Below is a link to a Google Sheets-based model that allows anyone in the community to change any parameter for ATOM’s tokenomics and compare the current conditions and recommended changes. We will keep this document in “View-Only” mode, so if you’d like to play around with it, please make a copy on your local Google Drive.

ATOM Tokenomics Modelling

Don’t hesitate to reach out if you have questions or don’t understand how something works. Thanks again for reading and we look forward to the next phase where we bring some of the ideas to a signalling proposal in the coming weeks/months!

Related Funding

Cosmos Hub Grant deployed by Atom Accelerator DAO (AADAO) to Blockworks for ATOM Tokenomics RFP: Blockworks

ATOM Tokenomics RFP: Blockworks

Team: Blockworks
Date Approved: August 1, 2023
Current Status: complete