ATOM Tokenomics Research Kickoff

Ok I stand corrected. Here is what googleAI says about it…

A Cosmos Hub governance proposal cannot force independent Cosmos chains to accept ATOM as a fee payment option. Each chain in the Cosmos ecosystem is sovereign and retains its own governance mechanism, meaning it can decide which tokens to accept for transaction fees.

However, the Cosmos Hub governance can implement incentive mechanisms to encourage other chains (called “zones” or “consumer chains”) to accept ATOM for fees.

Here’s how such an outcome can be achieved through cooperation and incentive design:

Incentives, not mandates: The Hub can create systems that make it economically beneficial for other chains to accept ATOM.

Interchain Security (ICS): Chains that use the Cosmos Hub’s shared security (Interchain Security) agree to specific terms approved by Hub governance. These terms often involve sharing a portion of their fees or their native tokens with the Hub validators/stakers.

Fee Abstraction Module: Proposals have been discussed and implemented (e.g., on Osmosis) that allow users to pay fees in any token, which is then automatically swapped for the chain’s native gas token (like ATOM on the Hub) on a decentralized exchange. A similar module could be adopted by other chains via their own governance.

Relayer Reimbursement: A mechanism has been proposed where relayers (which facilitate communication between chains) are reimbursed with ATOM from the Hub’s community pool for fees paid in ATOM on other chains. This incentivizes other chains to accept ATOM as a gas token.

Community Pool Grants: The Hub’s community pool, controlled by ATOM governance, could offer grants to chains that implement specific features like accepting ATOM for fees.

In summary, while the Hub cannot issue a direct mandate, it can use its governance and economic power to create a system where accepting ATOM for fees is an attractive, voluntary choice for other chains.