Cosmos Hub's ATOM Faces Divisive Hard Fork Following Inflation Reduction Vote

In response to the recent community vote to reduce inflation on the Cosmos Hub's native token ATOM, founder Jae Kwon has proposed a hard fork of the cryptocurrency. This decision has resulted in a divide within the Cosmos community and has led to a 4% decrease in the price of ATOM. The passing of Proposal 848, with 41.1% of the network's voting power in favor and 31.9% against, will see ATOM's inflation rate reduced from around 14% to a maximum of 10%. Proponents of the proposal argue that this reduction is necessary to maintain network security and that validators will still be able to break even or turn a profit. In a tweet, Jae Kwon has called for the community to coordinate a split and proposed the creation of a new network called AtomOne, which would support both ATOM and a new token called ATOM1. The new network would have a higher maximum inflation rate of 20% and an altered governance mechanism that requires a two-thirds threshold for proposals to achieve quorum. Additionally, 10% of the genesis supply of ATOM1 will be premined for various purposes, while the remaining 90% will be airdropped to those who opposed Proposal 848, based on their voting activity. Although the fork will use much of the existing Gaia architecture employed by Cosmos Hub, it is important to note these changes in the proposed new network.