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Cosmos Hub, which plays a major role in the blockchain space, is rocked by internal strife following the dismissal of Youssef Amrani, co-founder and chief executive of Atom Accelerator DAO.
The dismissal comes amid a sharp 60% drop in the value of the ATOM altcoin this year.
Atom Accelerator DAO, a crypto cooperative dedicated to supporting the Cosmos ecosystem, has distributed millions of dollars in grants to promote the Cosmos Hub blockchain and the ATOM token, both of which are envisioned as central components of the “internet of blockchains.” However, despite distributing over $6 million in crypto grants to over 80 organizations, the cooperative’s efforts have yet to yield the desired results and have triggered significant soul-searching among its members.
On September 25, Atom Accelerator employees unanimously voted to remove Amrani as chief executive, with his departure effective September 30. The decision stemmed from a debate over the awarding of performance bonuses, which has become a divisive issue within the organization.
The impact of Amrani’s ouster has led to a leadership crisis. Co-founder Ryan Orr has refused to take over the reins, suggesting the organisation either dissolves or finds a new leader to lead a “community renewal mandate”. In another blow, communications chief Syed Choudhury announced he will leave by the end of the year. Meanwhile, controller Patricia Mizuki, who initially raised concerns about bonuses, also plans to leave the organisation.
The co-op has also been plagued by legal problems. Choudhury said the organisation had received a legal demand letter from an unnamed former participant. The letter alleged unfair dismissal and defamation, and sought 12 months’ wages as compensation.
In response to these challenges, the Atom Accelerator DAO will conduct a comprehensive review of grants awarded during Amrani’s tenure to look for possible favoritism or nepotism, according to Choudhury.
The confusion comes after Cosmos Hub’s validators voted in December 2023 to allocate approximately 1 million additional ATOM tokens, worth over $8 million at the time, to fund the cooperative’s 2024 initiatives. The allocation of an additional 100,000 tokens for performance and retention bonuses raised questions about the organization’s future direction and financial management.
*This is not investment advice.