To address the pressing issues with ATOM tokenomics, AADAO has granted $100,000 to Blockworks as part of the first grant issued under our ATOM Tokenomics Request for Proposals (RFP). Blockworks’ research aims to revamp the ATOM token issuance model, introduce a revised fiscal policy, propose new governance mechanisms, and implement a dynamic liquid staking tax to generate revenue from ATOM liquid staking. These measures are crucial to decentralize the Cosmos Hub and manage high inflation effectively.
Blockworks will focus on key areas, including capping ATOM inflation at 10% (as initiated by Prop 848), further decentralizing the Cosmos Hub, and addressing the challenges posed by general multisigs used by organizations in Cosmos. Their research will also explore a dynamic liquid staking tax to optimize resource allocation and revenue generation. The grant aims to streamline processes and improve governance efficiency within the ecosystem.
The expected impact on the Cosmos Hub and AEZ is significant. By revising the issuance model and fiscal policy, we anticipate a more stable and predictable inflation rate for ATOM, enhancing its attractiveness to investors and users. The proposed governance mechanisms will ensure more decentralized decision-making, fostering a more resilient and community-driven ecosystem. Additionally, the dynamic liquid staking tax will provide a sustainable revenue stream, supporting the ongoing development and maintenance of the Cosmos network.
As each part of Blockworks’ research is proposed to the community, we expect a modular approach to ensure thorough consideration and adoption, ultimately leading to a more robust and efficient Cosmos Hub.
