COSMOS HUB FLIPS THE SCRIPT ON STAKING
In a bold move that has reverberated through the blockchain world, Cosmos Hub has officially launched a liquid staking module, allowing users to dodge that pesky 21-day unbonding period. Yes, you heard it right! Now, ATOM holders can reclaim their funds faster than ever. No more waiting around like it’s the DMV!
ATOM: THE KEY PLAYER IN COSMOS
Let’s get acquainted with the star of the show—ATOM. As the native token of the Cosmos network, ATOM was used primarily for staking, which meant locking up your coins to validate transactions and secure the network. Staking is like getting interest on your savings account, just without the bank fees, or the awkward conversations with your bank manager.
THE V12 UPGRADE IS A GAME-CHANGER
With the v12 upgrade successfully completed, the Liquid Staking Module (LSM) has gone live. Users can now liquid-stake ATOM that is already staked without having to twiddle their thumbs for three weeks. Talk about a game-changer! The Cosmos Hub tweeted about this exciting development, and crypto enthusiasts are buzzing like it’s a hot coffee shop on a Monday morning.
FINANCIAL FREEDOM: UNLOCKING $400 MILLION IN ATOM
According to Cryptocitos, a prominent yet pseudonymous validator in the Cosmos community, the implementation of this new module could unlock over $400 million worth of ATOM. That’s the kind of money that makes you rethink your investment strategy. The new module allows users to seamlessly transition between staking and the decentralized finance (DeFi) space, meaning they can have their cake and eat it too—just like we’ve always wanted!
INFLATION AND LIQUID STAKING: A BALANCING ACT
The liquid staking module brings along some inflation considerations. Currently, the bonded ratio for ATOM stands at 67.8%. As long as it hovers above 66.67%, ATOM’s inflation rate could dip to a more manageable 7% from its current rate of 14.26%. It’s like a good diet: control what you consume, and the results will follow.
CAPS AND CONTROLS: IT’S NOT ALL RAINBOWS
However, it’s not all fun and games. ATOM holders will have a cap of 25% on the total amount they can liquid-stake. To mitigate any potential risks associated with liquid staking, Cosmos Hub has introduced governance-controlled parameters. Plus, validators wishing to accept delegations from these liquid staking providers must self-bond a portion of ATOM. Think of it as putting your money where your mouth is—literally!
