Cosmos Considers Major ATOM Redesign as Price Hits Multi-Year Lows
Cosmos Labs is urgently seeking external economists to revamp ATOM’s token design as its price continues to struggle. Despite the Cosmos SDK seeing widespread adoption—including enterprise and government-backed projects—this growth has not translated into value for ATOM, largely because developers can launch independent chains without holding or paying fees to the Cosmos Hub.
To address this, Cosmos Labs is exploring a new revenue-driven model that would monetize both on-chain and off-chain usage. Potential outcomes include ATOM buybacks, higher staking rewards, or revised inflation dynamics.
The move also signals a strategic shift, with Cosmos acknowledging that Interchain Security, once ATOM’s main value driver, failed to achieve product-market fit and is being phased out. Future models may resemble enterprise software economics, using consumption-based fees rather than security rent.
Any changes must pass Cosmos Hub DAO governance, a sensitive process highlighted by past proposals that narrowly passed and triggered mass unstaking. The RFP closes January 15.
This initiative comes as ATOM is down nearly 76% this year, trading near $2.10, reflecting ecosystem stress despite growing adoption of Cosmos technology.
