Is Atom a good money?
Hi, Firstly, I apologize for my poor English proficiency. I’d like to delve into the role of Atom as a form of money. Here’s my humble opinion; no offense intended (I’m a big Atom and cosmos supporter) A thorough theoretical discussion took place here: Splitting ATOM: Money or Governance? . In my view, Atom isn’t well-suited as a money, and it’s crucial to clarify its role. The primary role of Atom is to secure the blockchain. It’s evident that using Atom as a money would compete with its primary function. As a money, Atom must be liquid, but as an asset ensuring security, Atom needs to be staked. Liquid staking could be considered as a solution, but it comes with its challenges: Distribution Issue: Supply Limitation : If Liquid Staked Tokens (LST) were to become a currency, their supply is voluntarily limited. There’s no logical reason to limit the money supply to 25% of the Atom bonded supply. In fact, it makes no more sense to align the money supply with the security needs of the network. Minting Process : LSTs are mintable by users it’s not manage by the hub. This means that to invest the Cosmos Hub, one must mint Atoms or wait a considerable time to increase…
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