Author: Five Fireballs Master

Original article: "Cosmos 2.0 Upgrade Critical Moment: Three Far-Reaching Proposals Are Pending"

What many people may not know is that the universe is currently at a very critical moment.

You may be wondering? Hmm? What’s the point? Didn’t the Cosmos 2.0 roadmap just get released a while ago? The token price has also been rising. It seems that everything is moving in a good direction? (Related reading: "The Cosmos 2.0 era begins, and the co-founder looks back on the "past and present" of Cosmos")

This is indeed the case. However, Cosmos 2.0 needs to be voted on before it can be deployed. Otherwise, how can it be called Web3? Then, by coincidence, Jae Kwon, the founder of Cosmos, came back to stir up trouble again and proposed a roadmap for Cosmos One, which is now competing with the proposal for the Cosmos 2.0 roadmap. In addition, there is a basic constitutional proposal for Cosmos Zero. Currently, the Cosmos community is voting and debating on these "three major constitutions"...

Let’s take a quick look at the three proposals:

01. Three proposals

1. Proposition 81 - Constitution Zero

This proposal is very simple and mainly stipulates the following basic rules, that is, any change to the project that meets any of the following four conditions must get 2/3 of the Yes votes to pass. The four conditions are as follows:

Any changes to the implemented token economics (other than bug fixes) Any token inflation beyond the default inflation of ATOMs Any changes to the governance process The adoption of any constitution (other than this minimal constitution)

If you think about it carefully, you will find that the purpose of Proposal 81 is likely to restrict Proposal 82, and Proposal 82 is the roadmap for Cosmos 2.0. However, most people are opposed to it at present, so it is highly likely that Proposal 82 will not be affected.

Then let’s look at Proposition 82.

2. Proposal 82 - Atom 2.0

This is the legendary Cosmos 2.0 roadmap proposal. We have previously discussed this in our article “How is the Cosmos ecosystem developing now, which is as popular as Ethereum? (Part 2)”. There are four key changes:

Interchain Security ICS (Interchain Security) - implements partial shared security of the Cosmos Hub and improves the value capture of the Atom Token (Cosmos Hub is an open proof-of-stake (POS) blockchain whose native staking token is Atom) Liquid Staking - gives liquidity to staked Atoms (similar to Lido's stETH) Interchain Scheduler - extracts cross-chain MEV and makes money for the protocol Interchain Allocator - allocates funds to ecological projects to prosper the entire Cosmos ecosystem

Of course, another key change is the Atom Token issuance mechanism. The new Token economics divides the issuance of Atom into transition and stabilization stages. During the transition stage of 36 months, Atom will be issued to the treasury crazily (10 million per month but decreasing exponentially every month), which is equivalent to a round of financing. After 36 months, the monthly issuance will drop to 300,000, keeping inflation at 0.1%.

Of course, it is beneficial in the long run, but the crazy issuance in the short term still caused great controversy in the community. Therefore, in order to respond to Cosmos One, that is, Proposal No. 83, the Cosmos2.0 roadmap has made some modifications, mainly targeting the modification of the treasury part of the previous token issuance. The 40 million Atoms issued in the first year were changed to 4 million, and the community pool was injected to fund all the features mentioned in Atom2.0 (development costs, inter-chain security, inter-chain allocators, etc.). After that, the community can decide whether to issue more Atoms (4 million per share, up to 12 shares) to meet the above needs by voting.

At present, most people voted Yes, but it is still unclear whether it can be passed. The reasons are explained at the end of the article. Let’s first look at Proposal No. 83.

3. Proposal 83 - Atom One

This is the plan of Jae, the original founder of Cosmos, for the future of Cosmos.

The stance on his proposal on Twitter is rather subtle. Some people jokingly said that Jae is like a dad who ran away from home when you were a child, gave birth to you but never raised you, and did not fulfill his fatherly responsibilities. Now that you have grown up, he comes back and starts to dictate your future life plans. If you think about it carefully, there is some meaning in that.

Of course, this is just an emotional thing. Atom One's roadmap still has some unique things. Jae expressed support for solutions such as inter-chain scheduling and allocation. The main points he disagrees with Cosmos 2.0 are the implementation method of inter-chain security and the treasury allocation that he thinks is exaggerated. The main method in his proposal is based on a new token called Photon.

This Photon Token can only be minted by staking Bond Atom Token. Photon can be used as Gas, or ICS and other alternatives to Atom to achieve various functions, allowing Atom Hub to maintain the minimal functions it has always advocated.

In fact, Jae proposed this idea a few years ago, but it has never been implemented. This time, with the launch of Cosmos2.0, he tried it again. The community’s controversy over this new token is even greater than the crazy issuance of new tokens in the Cosmos2.0 roadmap. A core developer of Cosmso directly stated that he has never seen a precedent for the underlying public chain dual-token model to work well.

At present, most people voted No, and very few voted Yes, so there is a high probability that he will not pass. Jae, the "runaway dad",'s wish to come back and give orders to his son should be dashed.

However, will Proposal 82, that is, the roadmap of Cosmos 2.0, be passed smoothly?

maybe.

02. The possible results of this vote and some things worth noting

1. Possible results: Cosmos has four options when voting

Yes and No are self-explanatory, and the third one, No with Veto, means exercising the veto power in addition to disagreement, while Abstain means abstention.

Any proposal of Cosmos will be invalidated if the number of veto votes exceeds 1/3, no matter how many votes are cast for Yes.

The current No with Veto percentage is 26.8% at the time of writing, so it is still unknown whether it will reach 33.3% by the end of the next few days.

But overall, the problem is not big, because even if the 2.0 plan is not passed, there is a high probability that several major functions of the 2.0 roadmap will be extracted and voted one by one, and basically they can be implemented. The veto power is mainly because of the issue of treasury issuance. After all, this is something that actually affects the circulation of tokens, prices and the vital interests of each holder. So if it really comes to that step, it must be a new proposal that is extracted from the Token model, carefully discussed, and re-voted until a community consensus is reached.

2. Atom One proposal is not optimistic

In addition to the fact that Jae's Atom One is unlikely to pass judging by the voting rate, another very important factor is the developer consensus. Currently, the Cosmos team and major developers basically support Atom 2.0, so even if Atom One is more advanced or gets more votes, it will be a big problem for subsequent development. "Developer consensus" is a factor that has a huge impact on the upgrade of the underlying public chain.

3. Some trading platforms closed down

Previously, for Atom Tokens pledged through major trading platforms, the trading platforms usually only help to collect Staking income on behalf of the platform, and do not participate in the governance of various proposals in order to achieve better decentralization. However, this major proposal has indeed attracted some trading platforms to vote on behalf of the platform. For example, Huobi participated in the governance for the eighth time, and Kucoin participated in the vote for the first time in history. The nodes of other major platforms still maintain the "glorious tradition" of 0 governance. When the voting period ends, we can check whether there are any new major nodes participating.

In any case, this Cosmos upgrade has attracted attention from all walks of life. With the rise of modularization and application chain concepts, I believe that the future of Cosmos will get better and better.

Friends, what do you think about this?