Share this article
Coinbase Says It’s Wary of Suggested Changes to ATOM’s Monetary Policy
Very little of the revenue generated by Cosmos’ ecosystem has historically accrued to holders of its ATOM token, the report said.
By Will Canny
Updated May 9, 2023, 4:00 a.m. Published Oct 24, 2022, 11:29 a.m.
Cosmos’ revamped road map attempts to position interchain security as the core application of the Cosmos Hub, with the introduction of liquid staking and the possible monetization of shared security, Coinbase said in a research report dated Thursday.
Cosmos released a white paper last month that proposed major expansions to the utility of the Cosmos Hub – the blockchain that sits at the center of the ecosystem.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Read more: New Cosmos White Paper Revamps Cosmos Hub, ATOM Token
“Despite its potentially critical role in a multichain future, very little of the revenues generated by the growing ecosystem of Cosmos appchains have historically accrued to holders of the native token, ATOM,” analysts Brian Cubellis and David Duong wrote. An appchain is a blockchain dedicated to running a single application.
The proposals aim to allow the Cosmos Hub to become a “credibly neutral provider of security,” the note said, while also further aligning the incentives between appchains and ATOM holders, the Cosmos’ native token.
“In this way they are trying to increase the likelihood that ATOM will generate a monetary premium,” the note added.
The white paper is ambitious, the report said. While some parts such as liquid staking, an on-chain market for MEV – or maximal extractable value, and a system for the coordinated deployment of capital to help grow the ecosystem are innovative improvements that may catalyze future adoption are clear, the advantages of the updated ATOM monetary policy are not as obvious.
Coinbase says it remains wary of the suggested changes to the monetary policy and questions whether potential benefits from the future capital deployment of the Cosmos Hub Treasury justify the risk of dilution for token holders in the near-term.
Read more: Ether Becomes Deflationary for First Time Since the Merge: Coinbase
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Stablecoin Adoption Is ‘Exploding' — Here's Why Wall Street Is Going All-In
Alchemy co-founder and president Joe Lau said stablecoin adoption is exploding as banks, fintechs and payment platforms push beyond the USDT/USDC exchange era.
What to know:
- Stablecoin usage is quickly broadening from crypto-native exchanges into payments, payroll and treasury as companies chase 24/7, digital-native settlement, according to Alchemy Co-founder and President Joe Lau.
- Banks are pushing tokenized deposits as a regulated, bank-native alternative that delivers stablecoin-like benefits for institutional clients.
- The endgame is a two-track system — stablecoins for open, two-party settlement; deposit tokens for bank ecosystems, until scale forces convergence and competition, Lau said.
Top Stories
