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Cosmos is a name that many in the crypto industry haven’t heard in a long time and for a reason. The network was failing to adjust to the current situation in the market and did not show any pathways to battling its strong competition due to the lack of security measures. On the other hand, their focus on interoperability was quite an intriguing decision. Now, the network will shift its focus toward security and interconnectedness even more.

The new proposal is a good thing for the network

New concepts outlined in the whitepaper dropped during the Cosmoverse conference will be implemented on October 3, this year. While these are still proposals, it is unlikely that these will be rejected since it is the only way for Cosmos to move further. Cosmos Hub is a very important part of the network that works as the common link for all blockchains that are operating within the ecosystem.

Cosmos Hub will be revamped to act as an interchain network that will provide tokens by allowing other projects to borrow from the pool formed by validators meaning that blockchains will be using the pool to ensure security without coming up with their solutions. The idea behind this change is to make the whole ecosystem decentralized with all the necessary tools to protect the decentralization. Additionally, the Hub will now be able to host a new type of dApps with functionality previously not supported.

ATOM, the native token, will be changed too. There will be a new issuance of tokens in two stages. During the first, transition phase, 10 million ATOM will be issued within the first month and the rate of issuance will be declining each month over three calendar years. Then, the second, steady state phase will begin.

Will it change the market situation for Cosmos?

ATOM saw a positive dynamic ahead of the conference. The news about upcoming changes did not infuse the community with too much faith which is reflected in a slight decline of the token on the market. However, it does not mean that Cosmos enthusiasts are not excited about the new whitepaper. Hopefully, ATOM will be fine.

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