While Tendermint, the ICF, and other entities have done an admirable job in pushing the Cosmos ecosystem forward, the ATOM 2.0 tokenomics model transition period is effectively a fundraising round for the Cosmos Hub that dilutes current ATOM tokenholders. If my back of the envelope math is correct, based on the formula presented in the whitepaper, if the proposal is passed, by the 36 month mark (and assuming the current ratio of staked ATOM remains constant), over 37 million ATOM tokens (current value of $525 million) will have been raised for the Cosmos Hub. While the funding may benefit the Cosmos Ecosystem at large, this level of funding seems excessive for a project that already allocated 20% of the genesis block to Tendermint Inc and the ICF, both of which should fund Cosmos Hub. The initial 10,000,000 per month token issuance is just too large, and before we move forward, a detailed explanation of how this money is going to be spent is required. As it stands, my vote for this proposal is a NO
11 Likes