The founder of Cosmos blockchain network opposes the suggested reforms of the ATOM token

Nov 13, 2022
Jae Kwon stated that he is an opponent of the proposed reforms of the network, which involve the appearance of liquid rates in the system.
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From the position of the founder of Cosmos, the appearance of liquid betting, which would give holders of the ATOM Cosmos token the opportunity to use derivative tokens to extract rewards in other networks, is unreasonable. The approval of proposition 82 could potentially create an unsafe precedent for the issuance of an uncontrolled volume of new ATOM2.0 tokens. This precedent is very likely to lead to the emergence of obvious risks of the blockchain network, most noticeably in the days when the crypto industry is experiencing the collapse of FTX and Alameda.

In early autumn, Cosmos published an updated white paper, thereby indicating a significant expansion of the capabilities of Cosmos Hub, the central blockchain of its ecosystem.

To date, Cosmos Hub shows solid sustainability and economic security. The reason for Cosmos’ stability lies in the fact that ATOM tokens are linked and do not face losses in high-risk conditions with excessive use of borrowed funds.

Recall that the Cosmos blockchain network started in 2014 with the Tendermint consensus algorithm, and its founders were developers Ethan Buchman and Jae Kwon. Two years later, the Cosmos network’s white paper was published and ATOM tokens were released.