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November 2023 Proposal Approval and Cosmos Hub Dynamics

In November 2023, the Cosmos Hub community made a crucial decision by approving proposal 848. This proposal aimed to reduce the maximum inflation rate of the native token ATOM from 20% to 10%. At the time of the proposal, the actual inflation rate of ATOM was at 14%, creating a contentious situation within the community.

Despite the initial expectation that the proposal would not pass, there was a sudden surge in votes just before the deadline. This surge, coupled with some validators changing their stance, led to the passing of the proposal with 41.1% of the votes. However, it is essential to note that a significant portion of the voters, accounting for 38.5%, voted against the proposal.

Following the passing of the proposal, Cosmos co-founder Jae Kwon, who was in opposition to the voting results, made a significant decision to fork the Cosmos Hub and create AtomOne. This move was aimed at decentralizing the decision-making process related to the genesis of AtomOne. To accomplish this goal, Kwon’s company, All in Bits, is launching GovGen.

How AI legalese decoder Can Help: The AI legalese decoder can assist in analyzing the legal implications of contentious proposals like 848 and provide insights into the potential consequences of such decisions. By decoding the legal language used in the proposal and related documentation, the AI tool can offer a clearer understanding of the implications of such actions, helping stakeholders make informed decisions.

Introducing GovGen for Decentralized Governance

GovGen is an innovative concept that emerged from the need to understand the sentiments of those who opposed Cosmos Hub’s proposition 848. This independent, governance-only chain is set to launch on Feb. 27. Unlike the AtomOne Hub, GovGen is a fork of the Cosmos Hub with minor modifications and aims to decentralize the genesis of the AtomOne chain.

How AI legalese decoder Can Help: The AI legalese decoder can assist stakeholders in comprehending the legal implications of forking a blockchain like Cosmos Hub to create AtomOne. By providing insights into the legal challenges, governance structure, and decision-making processes involved in creating GovGen, the AI tool can ensure that all legal considerations are taken into account before launching the new chain.

The Purpose and Functionality of GovGen

GovGen will enable holders of the GOVGEN token to participate in governance by voting on proposals to determine AtomOne’s initial chain parameters and token distribution. The GOVGEN token, a non-transferrable staking token, will be distributed to ATOM holders who voted against the proposal or inherited a ‘NO’ or ‘NO_WITH_VETO’ vote via delegation.

Since GovGen holders will shape the specifics of the AtomOne chain before its launch, all participants will become founding members of AtomOne. Kwon aims to showcase how governance voting choices can influence blockchain development and innovation, whether it involves forking a proof-of-stake blockchain or introducing new features.

How AI legalese decoder Can Help: The AI legalese decoder can assist in understanding the legal implications of governance structures within blockchain projects. By decoding the legal language used in governance proposals and contracts, the AI tool can provide insights into the potential legal risks and compliance requirements associated with decentralized governance mechanisms like GovGen.

Reasons Behind the Cosmos Fork

All in Bits decided to fork the Cosmos Hub to create AtomOne due to concerns regarding proposal 848’s impact on ATOM’s status as a staking token. According to the company, the proposal shifts ATOM towards becoming a monetary token, deviating from its original design that ensured ecosystem security.

Kwon highlighted that a significant minority of the Cosmos Hub community wished to uphold the security properties of the ATOM staking model, as indicated by the vote on proposal 848. Dissenters believe that the proposal could threaten the foundational pillars of Cosmos, necessitating the creation of a fork.

AtomOne is not positioned as a competitor to Cosmos Hub but rather as a bridge to enhance the security of the ecosystem. Through this fork, AtomOne aims to preserve the constitutional character of the Cosmos Hub and introduce new innovations in the blockchain space.

How AI legalese decoder Can Help: The AI legalese decoder can provide insights into the legal considerations behind forking a blockchain project like Cosmos Hub and aid in understanding the regulatory implications of creating a new chain like AtomOne. By decoding the legal language used in blog posts and statements from All in Bits, the AI tool can offer a comprehensive view of the legal rationale behind the decision to fork.

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