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Cosmos Hub’s native token ATOM is in an effort to compensate for the losses it experienced after the fork proposal of Cosmos founder Jae Kwon. An observer predicts that a possible hard fork could yield positive results for the investor community.
The community approved the decision to reduce ATOM’s inflation rate from 14% to 10% in a vote they held on Sunday. Kwon, who received this approval, used the expressions “Let’s coordinate a split” on Twitter. Although the annual staking return of ATOM will drop from 19% to 13.4% as a result of the vote, Kwon does not find this situation impressive enough and invites the community to participate in a hard fork.
According to Kwon’s plan named AtomOne, the forked chain will support not only ATOM but also the native token named ATOM1.
“I believe there should be token integration, so instead of selling our ATOMs en masse and deeply affecting the ecosystem, we can participate with ATOM. Tokenomy experts will do the necessary trials.”
Cosmos expert and Strategy President of Stride Zone John Galt believes that a potential hard fork could solve longstanding intra-community conflicts and positively affect ATOM token holders.
Galt also believes that the hard fork could trigger the largest ATOM airdrop to date and increase the trading volume of both ATOM and ATOM1 tokens.
However, according to CoinDesk data, ATOM is trading at $9.59, down 3.5% on the day. Although the cryptocurrency remained above $10 throughout the weekend, it could not establish significant support above the three-week resistance. This weakness of the token may be due to the industry leader Bitcoin’s attempt to exceed $38,000.
What is Fork? What are the differences between Hard Fork and Soft Fork?
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