Identifying Proposal 187’s full impact on Cosmos validators, ATOM holders
- Validators on the Cosmos Hub network will earn more tokens as it welcomes the Lambda V9 upgrade
- Validators currently stake over 60% of ATOM’s current market cap
The Cosmos community has voted in favor of a proposition known as prop 187, which has the potential to benefit ATOM stakers and holders. Due to sufficient votes, the proposal is now expected to go live on March 15.
Read Cosmos Hub (ATOM) Price Prediction 2023-24
Cosmos Hub Proposal 187
Cosmos is a blockchain network facilitating communication and interoperability between independent blockchains. It serves as a central hub that connects various blockchain networks. It allows them to communicate and transact in a secure and decentralized manner.
With a resounding majority, the community has decided to implement an upgrade dubbed the Lambda V9 via proposal 187. The proposed upgrade introduces a new layer of protection called Replicated Security. Replicated Security will allow ‘consumer chains’ to benefit from the Cosmos Hub’s robust security. Using an economic attack to filter or control a consumer chain has the same effect as censoring or controlling the network. As a result, supply chains don’t need to manage their own validator sets to reap the security benefits of the Cosmos Hub.
The IBC protocol is essential to the operation of Replicated Security. The Cosmos Hub’s validator set is periodically broadcast in IBC packets. Consumer chains then use this information to synchronize their validator sets with the Hub. As a result, validators on Cosmos can use the same stake to verify transactions across several chains.
According to Mintscan.io, this feature is now expected to go live on March 15.
What this means for ATOM
With the proposal, validators could use a single ATOM staked in the network to ensure the safety of several chains. Consumer chains must send them a share of their fees and inflation to compensate the validators and delegators of the Cosmos Hub for their work. After that, the Cosmos Hub will incorporate these tokens into its staking rewards. This change implies that validators can acquire consumer chain tokens as compensation for their efforts.
Staking rewards revealed that Cosmos Hub’s (ATOM) staking ratio was 60%, at press time. As a result, more than 60% of its market capitalization was staked then. The market cap was over $3.5 million, while the staking market cap was over $2.4 million.
Dev activity and price trends north
At the time of writing, Santiment’s data revealed that development activity on Cosmos Hub has been on the rise. Dev activity had a reading of 54 and was still peaking on the charts.
Preparation for the March 15 upgrade seemed to be clearly in progress, as seen by the dev activity metric’s ongoing state.
On the price front, ATOM has been on an uptrend for three days in a row on the daily timeframe. In fact, the altcoin had appreciated by more than 8% in the last 72 hours alone, withe the crypto trading at $12.2 at press time.
How much are 1,10,100 ATOMs worth today
The hike in ATOM holders is one of the potential effects of the aforementioned development. The rewards that validators receive and the opportunity to obtain additional tokens that may appreciate favorably will affect the number of validators too.