Cosmos has kicked off a formal push to redesign ATOM’s tokenomics, focusing on revenue-driven sustainability, lower inflation, higher long-term staking incentives, and positioning ATOM as the network’s unified reserve, gas, and settlement asset.

Cosmos Hub governance has initiated a formal research process to redesign ATOM’s tokenomics, aiming to move away from an inflation-heavy, circular model toward a revenue-driven, sustainable design that better aligns with Cosmos’ evolving role as shared infrastructure for enterprise and interchain applications. The work is framed as a multi-phase, data-driven effort that will feed into a future on‑chain proposal rather than an immediate parameter change, and is intended to reposition ATOM as the unified reserve, gas, and settlement asset across the Cosmos ecosystem. According to the kickoff post on the Cosmos Hub forum, the initiative is being led under the Cosmos Labs umbrella, with a clear mandate: design tokenomics that control inflation, create predictable and sustainable demand for ATOM, and strengthen long-term incentives for staking and economic security. The target model is explicitly “non‑circular,” meaning ATOM’s value should be supported by real economic activity—fees, shared security revenue, and ecosystem usage—rather than primarily by emissions used to subsidize staking rewards. To support this, Cosmos Labs has selected Gauntlet, a well-known quantitative research firm in DeFi, as a research partner for modeling, stress testing, and scenario analysis around different issuance, fee, and security configurations. This push comes after years of debate around “ATOM 2.0,” inflation, and the Cosmos Hub’s place in a broader ecosystem of app‑chains and consumer chains, including shared security and interchain services. The current research track positions the Hub as a more central piece of interchain infrastructure—serving as reserve collateral, gas, and settlement for cross‑chain activity—while seeking to reduce dilution for holders and maintain robust staking incentives over the long term. Any concrete changes that emerge from this research will still need to be formalized and approved through Cosmos Hub governance, so the present development is best understood as the start of a structured redesign process rather than a finalized tokenomics overhaul.

✨ AI-generated background, compiled from web sources — not editorial content.

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• Tokenomics
• Staking
• Inflation
• Revenue