On behalf of Govmos, we would like to express our strong support for this structured and community-driven initiative to research and refine ATOM tokenomics. A data-driven approach is precisely what the Cosmos Hub needs to solidify its long-term strategic positioning. We commend the organizers for creating this collaborative framework.
While we believe this process is vital, we see the most effective role for Govmos not as direct participants within the research working groups, but as dedicated, constructive reviewers of the subsequent outputs. Our commitment is to provide in-depth analysis and advice to the various proposers, ensuring the complex and interconnected nature of the Hub’s economy is thoroughly considered.
To that end, we wish to highlight several key areas we believe are critical for the research to address. These pillars are essential for enhancing ATOM’s utility and securing the Hub’s future as the Schelling point of the Interchain.
Key Areas for Consideration
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Incentivizing Long-Term Alignment: The Hub’s security and stability are predicated on the commitment of its stakeholders. We strongly encourage research into mechanisms that reward long-term stakers by gradually increasing their staking rewards over time. Such a model would naturally favor holders with long-term conviction and disincentivize mercenary capital.
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A Responsible Path to Lower Inflation: Lowering ATOM’s inflation is a critical goal for its long-term sustainability as a reserve asset. We advocate for exploring a phased approach where inflation is methodically reduced as it is replaced by other forms of value accrual. A sudden reduction without a corresponding value replacement could be disruptive, but a clear, gradual transition would be a powerful narrative.
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Variable Inflation Linked to Economic Activity: The current inflation model, while previously designer for interchain security, is largely disconnected from today’s Hub real economic throughput. We believe a sophisticated tokenomics model should incorporate a variable inflation rate that is incorporating the liquid staking ratio. A model that we have shared more than a year ago: CHIPs discussion phase: Re-designing the Inflation Formula
Our Commitment and Role
By maintaining an external advisory position, our goal is to serve as a well-informed and objective resource for the community and the research teams. We will thoroughly review the models and proposals that emerge from this process, offering detailed feedback aimed at ensuring they are robust, sustainable, and aligned with the core principles of the Cosmos Hub.
We look forward to the insights this research will uncover and are eager to collaborate with the selected teams to forge the next chapter of ATOM’s evolution.
Thank you for reading,
The Govmos Team.
