Research Summary
The report discusses the recent controversial proposal in the Cosmos Hub that led to a reduction in ATOM’s max annual inflation rate from 14% to 10%. This decision has led to the Cosmos Founder proposing a chain split and the launch of a new blockchain called AtomOne. The report also highlights the use of airdrops by Solana projects to boost their ecosystem and the increasing institutional interest in crypto. Additionally, it mentions the launch of Staking v0.2 by Chainlink and the introduction of Sei V2 by Sei Network.
Key Takeaways
Cosmos Hub’s Controversial Proposal and the Proposed Chain Split
- Cosmos Hub’s Inflation Rate Reduction: The report discusses a recent controversial proposal in the Cosmos Hub that led to a reduction in ATOM’s max annual inflation rate from 14% to 10%. This decision was met with mixed reactions, with many ATOM holders welcoming it as it could lead to less selling pressure for ATOM.
- Proposed Chain Split: In response to the inflation rate reduction, the Cosmos Founder proposed a chain split and the launch of a new blockchain called AtomOne. The new blockchain would operate alongside Cosmos Hub and would airdrop a new token called ATOM1 to ATOM stakers, primarily those who voted against the inflation reduction proposal.
Solana’s Use of Airdrops to Boost Ecosystem
- Use of Airdrops: The report highlights how Solana projects are using airdrops to attract attention and liquidity, thereby boosting their ecosystem. Examples include Pyth Network’s $100M+ airdrop for active on-chain users and Jupiter’s retrospective and future airdrop for its users.
- Impact on Solana’s Ecosystem: The use of airdrops has helped increase Solana’s Total Value Locked (TVL) and trading volume. The report suggests that if more projects coordinate and announce their airdrops around the same time, Solana could experience significant growth.
Increase in Institutional Interest in Crypto
- Institutional Interest: The report notes a substantial increase in institutional interest in crypto over the past weeks, suggesting that institutions may be betting on the approval of a spot BTC ETF soon.
Chainlink’s Staking v0.2 Launch and Sei Network’s Introduction of Sei V2
- Chainlink’s Staking v0.2: Chainlink launched Staking v0.2, enabling LINK holders to earn rewards from a 45M LINK pool.
- Sei Network’s Sei V2: Sei Network introduced Sei V2, a new parallelized EVM blockchain that is EVM compatible and is set to launch in H1 2024.
Actionable Insights
- Understanding the Impact of Inflation Rate Reduction: The controversy surrounding the reduction of ATOM’s inflation rate in the Cosmos Hub highlights the importance of understanding the potential impacts of such decisions on the security and stability of a blockchain. Stakeholders should consider these factors when making decisions about inflation rates.
- Exploring the Potential of Airdrops: The success of Solana projects in using airdrops to boost their ecosystem suggests that other blockchain projects could explore similar strategies to attract attention and liquidity.
- Monitoring Institutional Interest in Crypto: The increasing institutional interest in crypto indicates a growing acceptance and potential for growth in the crypto market. Stakeholders should monitor these trends to understand the evolving landscape of the crypto market.
- Exploring Staking Opportunities: The launch of Staking v0.2 by Chainlink presents an opportunity for LINK holders to earn rewards. Stakeholders should explore such staking opportunities to potentially increase their returns.
