One last comment in this thread, this time about the ATOM One proposal. Jae proposed this last year and it got overwhelmingly rejected by the ATOM community. If he wants to go in that direction, fine. That proposal showed you how popular his idea is - not much. I think most of the validators will stay on the Cosmos Hub and may be a small portion - those 20-30 that voted NO on 848 will follow him there. ATOM1 will be dramatically more centralized than ATOM at the start with 20% inflation that will centralize stake even further. But just like after the Bitcoin Cash fork, 6 years later now Bitcoin is $700 billion market cap now and Bitcoin Cash only $4 billion, the same will happen with ATOM and ATOM1. ATOM is in fact moving towards a more conservative, rational and better regulated market based monetary policy that enhances the monetary properties of ATOM while ATOM1 wants to preserve the perpetual venture capital insider dump that Jae originally designed. Jae overtime will find that investors don’t want to be dumped on. In its essence, this is a conflict of interest between venture capitalists (Silicon Valley) who want to extract rent forever from Wall Street (investors deploying accumulated savings). As you can imagine, Wall Street guys didn’t get rich by sleeping on tents on Skid Row and smoking crack. It’s not those guys giving billions of market cap to your project, lads. Those guys can’t even buy a pack of cigarettes much less pay $10 for digital token which is of no immediate use in their miserable lives. lol
In any case, in the fixed-issue PHOTON backed by 20% inflation ATOM1 token, what Jae will find out is that ultimately a financial asset is determined by what it is backed by - the collateral. A Gold depository receipt is just paper. It only has value because there is Gold behind it. The US dollar token only has value because there is a US military behind it. In this case, the value of the PHOTON is ultimately always determined by its collateral - ATOM1. Or more specifically, the market price of ATOM1. And given the 20% inflation, the market price of ATOM1 will be going to zero in the long run. No exchange will want to hold ATOM1 and if they don’t then validators can’t sell their ATOM1 for fiat to fund their operations. The reformatted 100% liquid staked ATOM in the form of PHOTON will not work. At least not at 20% inflation rate. This scheme only works as Cardano has formally academically proven and shown in practice (and PHOTON is essentially Cardano since Cardano is a fixed issuance liquid staking token) only at a 3-5% inflation level. So essentially for Jae’s ATOM1/PHOTON scheme to work, the ATOM1 inflation will have to go down to 3-5% level. Which is what we are doing here with ATOM already. In other words, Jae’s experiment will just prove that the ATOM community made the right choice in Prop 848. No matter what technical approach you take at this economics problem, it is essentially exactly the same economic problem.
Cheers!