What To Know:
- Cosmos has introduced a proposal to begin formal research on a new ATOM tokenomics model focused on revenue capture, fee accrual, and long-term economic sustainability.
- The process will unfold across five stages: from RFPs and team selection to data gathering, analysis, and final governance.
- The first phase centers on core fundamentals, aiming to build a non-circular, revenue-driven model similar to Osmosis’ fee-based system, before adding optional mechanisms later.
The Cosmos network community has released a proposal that outlines the start of a formal research process to design a new tokenomics model grounded in revenue and fee capture. The initiative aims to prepare a structure aligned with the long-term needs of the Cosmos Hub, enterprise partners, and developers building across the broader ecosystem.
Cosmos Considers New Tokenomics Model for ATOM
The proposal sets a clear direction. Revenue generation and fee accrual should form the core economic engine of ATOM. Community discussions have already surfaced major areas of interest. Long-term stakers could see gradually increasing rewards. Inflation could fall through a phased approach. ATOM could serve as the reserve, gas, and settlement asset across the ecosystem. A variable inflation model tied to accumulated fees has also attracted interest.
The research process will follow a defined structure. Five stages anchor the workflow: a request for proposals, research team selection, information gathering, analysis and results, and finally governance. Each stage will involve Cosmos Labs and the community. The timeline is flexible, but the structure is meant to ensure transparency and steady progress.
The motivations behind the initiative were first outlined in October. Those goals remain unchanged and the research team will examine how ATOM functions today. It will collect usage data, market behavior patterns, and network-level metrics. It will test alternative economic structures and simulate their performance under different scenarios. It will then design a transition plan that avoids disruption while strengthening ATOM’s long-term position in the market.
The Cosmos community has already demonstrated strong interest in the process. A public working group on Telegram generated thousands of messages within days. Many ideas were creative. Many were ambitious. The discussions also revealed the need for clearer boundaries between fundamental tokenomics and optional mechanisms built on top. Community members repeatedly asked Cosmos Labs to move faster and take more responsibility for defining what should fall within the research scope.
The proposal addressed that input. The first phase will focus solely on fundamentals. Mechanisms that rely on the base model will come later. The separation is intentional. It prevents economic circularity and ensures that future features rest on a stable foundation.
A comparison to Osmosis illustrates the point. Osmosis derives value for its token, OSMO, by capturing fees from activity within its protocol. Over time, the chain added mechanisms that direct part of those fees to stakers or buy back and burn tokens. The fundamental model came first. The mechanisms followed. Cosmos Labs aims for a similar sequencing with ATOM.
A revenue-based model for ATOM would likely draw from enterprise adoption of the Cosmos Stack, as well as from usage of apps, services, and products built around the Hub. Recent updates from projects such as zkSync and Uniswap have focused on fee-based structures that support flexible economic design. These models provide room for additional mechanisms without relying on artificial scarcity.
Circular tokenomics remain a concern across the industry. Models that depend heavily on forced lockups or emissions often collapse when market conditions weaken. The proposal for ATOM aims to avoid that trap. A non-circular structure powered by actual revenue and network usage introduces durability. It also creates stronger alignment between developers, stakers, and enterprise participants.
The next step will be the release of the official request for proposals. Research teams will submit qualifications and design approaches. The community will select a team. Once that team begins work, information gathering will take place in parallel with open discussions. Analysis and publication of results will follow, leading to a governance vote on the final structure.
Also Read: Berachain Denies Refund Rights Amid Fresh Market Volatility
