Cosmos Labs has opened an urgent search for external economists to redesign the ATOM token amid the digital asset’s price struggles.
According to the firm, the Cosmos SDK has become a widely used framework for launching blockchain networks. This includes projects tied to major enterprises and government initiatives often cited as evidence of “Fortune 500” interest.
Why Cosmos Wants to Overhaul ATOM’s Design
However, because the software is open source, those users can deploy independent, sovereign chains without paying fees or royalties to the Cosmos Hub.
As a result, these institutional builders can use the network’s core technology without holding or interacting with ATOM.
The blockchain development firm wants to change this by promoting a new “revenue-driven model.” This approach would monetize both on-chain and off-chain usage.
“The goal of this research effort is not to design a new tokenomic model from first-principles, but rather to provide research and design support for a revenue-driven model that synergizes various sources of potential ATOM revenue with updates to ATOM’s supply dynamics and inflation schedule. Ultimately, ATOM’s utility will be driven by these fees, either in the form of ATOM buybacks, ATOM staking rewards, other mechanisms, or some combination thereof,” it stated.
Meanwhile, the initiative also marks a strategic pivot for the Cosmos ecosystem.
Cosmos Labs acknowledged that Interchain Security, the shared security framework once promoted as ATOM’s primary value driver, “failed to find product market fit.”
“Interchain Security is in the process of being deprecated, and the Hub’s economic architecture remains relatively detached from the broader activity of the Cosmos ecosystem. It lacks a comprehensive fee model today, outside of transaction fees occurring on the network,” the firm explained.
Consequently, this redesign effort points toward economic models closer to enterprise software norms, including consumption-based fees tied to usage rather than security rent.
However, implementing any proposal would face significant political constraints. Any material changes must be approved by the Cosmos Hub DAO, which has historically resisted measures viewed as centralizing.
Cosmos Labs referenced a previous proposal to reduce inflation that passed by a narrow 3% margin. The decision triggered a sharp withdrawal of staked assets, illustrating how sensitive token economics remain within the community.
Considering this, the firm stated that any successful proposal outlines potential revenue pathways, analyzes supply-side constraints, and offers practical guidance aligned with stakeholder interests. The RFP closes Jan. 15.
Meanwhile, this move comes as ATOM has fallen nearly 76% this year to a five-year low of around $2.1.
This price performance reflects a deep stress across the ecosystem, even as the Cosmos software stack has gained wider traction among blockchain developers and institutional pilots.
