Introducing Atom Circuit, a new permissionless tool designed to bring value back to $ATOM
Introducing Atom Circuit, a new permissionless tool designed to bring value back to ATOM.
Using Skip to facilitate swaps, Atom Circuit takes a 0.5% fee (less than Keplr’s in-wallet swap fee of 0.75%) to buy back and stake ATOM permanently through a smart contract.
From there, rewards are auto-compounded to ensure long-term growth.
Atom Circuit swaps are available on desktop as well as on mobile. On Keplr mobile we recommend opening http://atomcircuit.net in the in-app browser, and adding it to Favorites from the 3-dots at the bottom right for instant easy access each time.
We have docs with more details. Feel free to try it out and we welcome feedback and suggestions in our Telegram group or here.
Very interesting direction.
I think tools like this become even more important as interchain ecosystems continue to grow in complexity and transaction volume.
One aspect I find particularly interesting is how permissionless coordination layers could evolve alongside lightweight verification, fast synchronization mechanisms and more distributed trust assumptions between chains and services.
With the rise of AI agents and machine-to-machine interactions, I suspect ecosystems like Cosmos will eventually need increasingly efficient ways to propagate, verify and certify distributed state across large-scale interchain environments.
Curious to see how you envision the long-term infrastructure implications around scalability, verification and interoperability here.
@cosmosrescue Excellent initiative. Building actual value-capture primitives is exactly what the Hub needs right now to attract and retain institutional capital, instead of endless governance wishlists. I want to put three strategic points on the table regarding your “black hole” mechanics, specifically on how this aligns with large stakeholders: 1. The Institutional Dual-Win (Retail funding scarcity): This model is a brilliant honey-trap for CEXs and massive whales. It allows institutional capital to keep generating their native staking yields securely on their own infrastructure, while a retail-focused tool like Atom Circuit acts as a vacuum cleaner. By using retail swap fees (0.5%) to continuously buy and lock ATOM, institutions win twice: they keep their baseline yield, AND they enjoy continuous macro price appreciation funded entirely by retail convenience volume. 2. Burn vs. Permanent Staking: Have you considered directly burning the captured ATOM instead of staking it permanently? While permanent staking removes it from circulation, it still contributes to the network’s compound inflation. A direct burn destroys the supply completely, creating pure deflation, which is…
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On your different points: “Have you considered directly burning the captured ATOM instead of staking it permanently?” I think this heavily depends on the future inflation model Gauntlet will propose for the Hub. At the moment, my intuition is that staking captured ATOM probably makes more sense initially than pure burning, mainly because reaching and maintaining a strong staking ratio (~67%+) still matters a lot for the Hub’s security and inflation dynamics. If staking participation remains too low, burning alone could reduce supply while simultaneously weakening economic security. So personally I don’t necessarily see this as: • staking OR burn but potentially: • staking AND burn with the balance adapting dynamically depending on the state of the Hub. For example: • lower staking participation → prioritize staking • healthier staking ratio + reduced inflation → progressively increase burn pressure • larger protocol revenues later → split between staking, burn, treasury, and ecosystem incentives I think a hybrid model is probably more sustainable long term than committing 100% to either side today. Regarding your “Universal…
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Super interesting. Thanks for your hard work.
Is ATOM Circuit built into Skip or something people need to manually choose to use?
How will the stake be divided among validators?
@Guinch_Roze My apologies, perhaps I didn’t express myself clearly enough in my previous message. You are absolutely right, and I fully support your analysis regarding the sell-pressure of a purely passive dividend.
Allow me to clarify my definition of “Universal” in this context. I am not advocating for rewarding passive holders who just sit on the asset waiting for a pump. The “Universal” aspect applies to the active ecosystem: users of the app, active stakers securing the network, and those generating volume that contributes to the burn mechanics.
The yield should exclusively flow to those who actively nourish the Hub, acting as an “Alignment Reward” rather than free money. We are on the exact same page here: protect the asset from passive dumping and monetize the infrastructure. You have my full support on this approach. Let’s keep pulling the cart forward together.
thank you for your comments! @TeragoneFactory thanks! we see atom circuit is one permissionless primitive - when more interchain activity (including agent-driven flows) routes through the hub, value capture layers like this are how atom benefits from it in the end. @TRAVE burn vs stake - current design routes captured atom into permanent stake on the attributed validator, which removes supply from active circulation and strengthens the staking ratio at the same time. a hybrid that shifts between stake and burn depending on the staking ratio and post-gauntlet inflation is interesting and something we can potentially consider later without breaking the existing flow. @AtlasStaking currently it is skip built into atom circuit, so if you swap through atom circuit - skip is the “backend”. stake is divided based on attribution: • validator registration is permissionless - you or anybody else can register any validator from the active set by using cosmosvaloper1 address • validators get a “ref link” (ie https://atomcircuit.net/swap?ref=cosmosrescue ) - if anybody swaps through that link - collected fees are swapped to atom and staked with this validator • if no ref link is…
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@cosmosrescue Thanks for the additional details, really interesting architecture.
The attribution model combined with permissionless validator registration is a clever way to align value capture with ecosystem participation over time.
I also think the “agent-driven flows” angle will become increasingly important longer term. As more automated services and machine interactions emerge across interchain environments, lightweight coordination and scalable infrastructure primitives around routing, verification and state propagation will probably matter a lot more than they do today.
Looking forward to seeing how the project evolves.
atom circuit updates: so far around 50+ atom have been permanently staked across 14 validators ($100+). thank you for the support! new: boosts a few people asked for a way to support a specific validator with staked atom without going through swaps. it’s now possible via boosts. how it works: open a validator page on atomcircuit.net , hit the boost button, choose amount of atom, sign the transaction. the contract receives the atom and delegates it to the validator forever. no unbonding, no withdrawal - it stays in the contract by design. essentially a permanent donation that stakes to the validator you choose. once boosted, no way back. docs: https://docs.atomcircuit.net/how-it-works/boosts/ analytics analytics are live at https://atomcircuit.net/analytics what’s there: • swap volume and value over time • per-validator boost leaderboard • top wallets by attributed swap volume • chain flow showing where swaps originate • staked-atom growth chart embed sdk any website can now embed the atom circuit swap directly via @atom-circuit/embed-sdk . live preview at https://atomcircuit.net/integration . three lines of html and the swap widget renders…
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I believe this approach is a huge play for the ideology of the ecosystem, and this could/should be applied to the injective buyback scheme in one form or another, I will definitely be looking into using this pathway in the future. Good to see the willingness to contribute is rife in the ecosystem
Cosmos Hub is often compared to the heart of the Interchain, but I think a better analogy is the Linux kernel. Linux became the foundation of modern computing not because it extracted value from every application built on top of it, but because it remained neutral, open, and permissionless. Companies such as Google, Amazon, Red Hat, Canonical, and countless others built successful products around Linux. The kernel itself did not charge a fee for every server, website, or smartphone that used it. IBC follows a similar philosophy. It was designed to allow sovereign chains to communicate freely without requiring permission from a central authority. This is one of the greatest strengths of Cosmos. Recently there have been increasing discussions about ways for ATOM or the Hub to capture value from activity across the Interchain. While I understand the motivation, I believe we should be very careful not to undermine the very principles that made Cosmos successful. If value extraction becomes embedded into the protocol itself - through mandatory fees, taxes, or rent-seeking mechanisms - we risk turning a neutral public good into a toll road. History shows that open ecosystems…
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Update: 270+ ATOM staked forever so far from swap fees. Full analytics is available here.
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