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Cosmos Network (ATOM)

A decentralized network of independent, scalable, and interoperable blockchains

KEY METRICS [as of 28 Apr 2019]
Ticker ATOM
Public Fundraiser Price $0.10 USD
Public Fundraiser Date April 2017
Mainnet Phase 1 Launch Date 14 March 2019
Token Transfer Enablement Date 25 April 2019
Initial Total Supply 236,198,958.12 ATOM
Initial Network Inflation Rate 7% APY
Current Block Reward 3.62 ATOM
Current Circulating Supply 190,238,328 ATOM
Current Staked Supply 124,869,453 ATOM (65.64%)
Target Staking Ratio 66.66%
Average Block Time 6.85 seconds
Delegation Unbonding Period 21 days
Project Website https://cosmos.network/

PROJECT OVERVIEW

  • Cosmos Network is an ecosystem focused on the scalability and usability of blockchain solutions. Its core products are Tendermint consensus, the Cosmos SDK, and Interblockchain Communication (IBC), built with the vision of enabling an "Internet of Blockchains"
  • Featuring a Bonded Proof-of-Stake mechanism, Cosmos utilizes a "Hub-and-Zone" model to allow for interblockchain transactions to occur.

KEY FEATURES & HIGHLIGHTS

  • Tendermint Core: Tendermint Core is a ready-to-use blockchain engine featuring the eponymous practical byzantine fault tolerant consensus protocol. This core can be used to build both public and private blockchains. The consensus mechanism offers instant finality and security, prioritizing safety over liveness.
  • Cosmos SDK: The Cosmos SDK is a package of tools that expedites the building process for developers that want to create their own blockchains for their own apps.
  • Interblockchain Communication: Giving developers more tools to build their own blockchains, the next component of the Cosmos project is to improve the interoperability of different chains, enabling transactions to occur across chains and layers. Utilizing a combination of zones, one can transact freely in a crypto ecosystem across IBC-compatible chains.

WHAT IS ATOM?

The ATOM is the base unit of the Cosmos Hub, which can be further subdivided into 1 million micro ATOM (uATOM).

MISSION

The Cosmos project aims to create an entire ecosystem around a blockchain running on Tendermint BFT consensus to make blockchains easier to use, from providing developer SDKs to enabling interblockchain communication via a "Hub-and-Zone" model. The Cosmos chain will serve as the first hub, through which other chains and tokens can transfer information using Interblockchain Communication.

TOKEN SALE & ECONOMICS

KEY METRICS
Token Name ATOM
Token Type Native
Initial Total Supply 236,198,958.12 ATOMs
Seed Allocation Tokens 12MM ATOM (5.08%)
Seed Sale Token Price $0.025USD / ATOM
Seed Contributions Total $300,000 USD
Strategic Allocation Tokens 16.6184MM ATOM (7.03%)
Strategic Allocation Price $0.08USD / ATOM
Public Fundraiser Date April 2017
Public Fundraiser Allocation 160.29305 MM ATOM (67.86%)
Public Fundraiser Price/td> $0.10USD / ATOM
Amount Raised Public Sale $16.0293 MM USD

Token Supply Distribution:

  • Seed tokens comprise 5.08% of total supply.
  • Strategic tokens comprise 7.03% of total supply.
  • Public Fundraiser tokens comprise 67.86% of total supply.
  • All in Bits, Inc. (dba Tendermint) received ~10% of total supply.
  • Interchain Foundation received 10% of total supply.

Private Sale Overview

  • Seed Round: Sale conducted at a rate of 1 ATOM = 0.025 USD and raised a total of USD 300,000, selling 5.08% of total token supply
  • Strategic: Sale conducted at a rate of 1 ATOM = 0.08 USD and raised a total of USD $1.3295 MM, selling 7.03% of total token supply.

Public Sale Overview

  • Public Fundraiser sale was conducted in April 2017 for a total raise of ~$16 MM USD worth of ETH at ~$0.10 per ATOM for 67.86% of total token supply.

Token Governance & Use of Funds

The All in Bits (team) tokens are earmarked specifically for the continued support of Tendermint and building of tools such as the Cosmos SDK and the underlying technology for the ecosystem. Tokens given to team members are non-transferrable for 12 months, but can be staked and used in governance. The rest of All in Bits' tokens are vesting for 22 months with a 2 month cliff after mainnet launch.
Conversely, the Interchain Foundation is a non-profit entity to encourage and support open and decentralized networks, and as such has funded projects such as sponsoring Cosmos' Game of Stakes testnet competition.

Treasury

The All in Bits team uses a multisignature wallet to hold the team's allocation of ATOM tokens.

Token Overview & Use Cases

In this proof-of-stake system, the ATOM token is used as a work token, whereby users can stake their ATOM or delegate their ATOM to other validators who are participating in validation.

  • Based on aggregate token share delegated to a given validator, each validator will have a proportional "voting share" that translates into the proportionate opportunities to validate blocks on the network and earn the accompanying block rewards, much like in Proof-of-Work systems where hashrate proportions determines the relative likelihood of finding the next block.
  • Validators then pass back the proportional block rewards (less a network tax for a reserve pool) back to the delegators, whose token bondings contribute to the aggregate voting share of the validators. Much like a pool in PoW networks, the validators take a fee for the work of aggregating the voting share.
  • The network tax will go towards a reserve pool that can be used to increase the security around the Cosmos Network.
  • As of the current time of writing, the median delegator commission fee sits at 10% for the active validator set.
  • Validators compete not only on fees, but also uptime. In the beginning, only 100 validator slots will be available upon mainnet launch for the first year (growing to 300 over the next 10 years), and thus the validators that demonstrate high uptime are selected as the genesis validators. To remain active, they must maintain high uptime, or risk unbonding of their delegated tokens and "jailing" of their validator status.

The network inflation rate is bounded, with a minimum of 7%, and a maximum of 20%; the block reward is adjusted to achieve a target network staking participation rate of 2/3 (66.66%). All staked tokens require 21 days to "unbond", so that stakers cannot sell their tokens right away after staking.

Cosmos tokens are also used for on-chain governance; for example, token holders recently voted for the proposal of enabling token transfers.

The project may also release or airdrop a secondary token called the Photon, specifically for transaction fees. This token has not yet been finalized as of the time of writing. Photons in the long run would be generated by validators and stakers for their transaction processing. The specifics of the Photon will be determined via on-chain governance.

ROADMAP & UPDATES

Cosmos' milestones, both upcoming and past, can all be found on the project's website.

As of time of writing, the next milestones for Cosmos are to propose support for IBC, and a full transfer of governance to the entire Cosmos token holder community.

The project's original roadmap from early 2017 can be found here.

For a full picture of the launch of Cosmos network, please refer to this Medium primer.

TEAM OVERVIEW

As per the Cosmos website disclaimer, "the development of the Cosmos project is led primarily by Tendermint Inc." - a private, for-profit entity, but the funding for the development comes from the Interchain Foundation, a Swiss non-profit.

The full Tendermint team, profiles, and backgrounds can be found on the Tendermint website.

TRADING DATA

Liquidity

ATOM token transfers were unlocked 25 April 2019, so limited trading data is available as of the publish date of this report. Please note: some exchanges are trading IOUs, rather than the true ATOM token. Please be cautious with all funds.

TECHNICAL OVERVIEW

Cosmos has several public repos, ranging from its public SDKs, to documentation for its migration from testnets to mainnet. Since Cosmos runs on Tendermint, we have included the Github repository for Tendermint consensus as well in the following repository list.

GitHub Overview

Top Public GitHub Repositories

Tendermint

Tendermint Core (BFT Consensus) in Go

133 Contributors   7,214 Commits  
Cosmos SDK

An SDK framework for building blockchain applications in Golang

83 Contributors   5,392 Commits  
sdk-application-tutorial

A tutorial for building modules for the Cosmos SDK

19 Contributors   134 Commits  
Ethermint

Ethereum on Tendermint using Cosmos-SDK

5 Contributors   198 Commits  
Launch

Repository to help with Cosmos' official Launch

76 Contributors   187 Commits  
Interchain Standards

A repository for Interchain Standards Development

4 Contributors   19 Commits  
testnets

Cosmos Testnets archive

35 Contributors   316 Commits  

BLOCKCHAIN & NETWORK DATA

Cosmos and Tendermint have several projects that have been building within their ecosystem. For example, projects like the Binance Dex, FOAM, and Sentinel run on Tendermint-powered blockchains.

Other projects, such as IRIS Network are already building services and support around the Cosmos system for easier adoption in specific targeted geographies.

A full list of 84 projects building on / with Cosmos can be found on this list.

Cosmos' Interblockchain Communication (IBC) works by bonding an amount of ATOM, then relaying a proof of the ATOM bonding to a second chain, and then validation of this proof, before a corresponding amount is released on the second chain. This makes it easier to issue and create tokens representing assets on other chains. IBC is compatible with fast-finality chains, meaning blockchains with instant or near-instant confirmation times where a transaction is certain to be final within a short period of time; however, chains running on Proof-of-Work that do not have fast finality can still be used in IBC with the help of "Peg Zones" that impose a "finality threshold" for some number of blocks to assume that transactions are effectively final, similar to how accepting parties (such as exchanges) require deposits of Bitcoin to receive a certain number of confirmations to reduce the risk of any double spends or other attacks. This "pseudofinality" from this threshold is relayed back to the Cosmos ecosystem using the peg zones.

While the first peg zone for Ethereum started in 2018, other chains such as Loom have already announced compatibility with the Cosmos Hub.

COMMUNITY DATA

Community Strategy

Cosmos’s main community focus has been to create tools for developers to use its SDK. The team has encouraged various Hubs to provide localized support in Asia, particularly in the Chinese and Korean communities. The Tendermint team, primarily based in Berkeley, California, also is active in the Bay Area blockchain community. The Interchain Foundation, based in Switzerland, also provides unique access to collaboration with other chains to adopt / adapt to IBC standards. Together, the cohesive goal (across team, foundation, and Hubs) is to increase blockchain interoperability and enable more dApps working within a more cohesive blockchain ecosystem.

Cosmos Social Channels

  • Twitter | 21.4K Followers
  • Cosmos Blog
  • Medium (Interchain Foundation) | 2.1K Followers
  • Reddit | 3.3K Followers
  • Telegram | 8.4K Followers
  • Youtube Channel | 959 subscribers
  • Cosmos Forum

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