Cosmos Hub (ATOM)

Cosmos Hub is a Layer 1 protocol and one of the first protocols to successfully address the interoperability issue.

Cosmos Hub effectively solves the problem of interoperability through its use of the Inter-Blockchain Communication (IBC) protocol ensuring that blockchain technology doesn’t remain siloed, inaccessible and that other protocols can communicate. Cosmos Hub’ mission is to have over a million different blockchains interconnecting constituting an internet of blockchains.

Figment Validator Address:
cosmosvaloper1hjct6q7npsspsg3dgvzk3sdf89spmlpfdn6m9d

Market Cap

$720.4M

Staking Reward Rate*

19.28%

Price

$1.38

Auto-Compounding

No

Reward Frequency

1 Block (<1 Hour)

Activation

Immediate

Withdrawal

21 Days

Slashing Penalties Enabled

Yes

*Staking Reward Rates (SRR) vary based on network conditions, delegation size, and infrastructure optimizations. Contact our team to explore your potential rewards.

Why Stake Cosmos Hub With Figment?

• The Cosmos Hub mainnet launched on March 13th, 2019
• Cosmos platform enables value being exchanged, stored, and secured between parties within the IBC
• ATOM is the native token of the Cosmos Hub, and the ATOM token is used for transaction fees, staking, governance, and more on the network
• Developers can choose to build entirely autonomous application-specific blockchains that can easily interconnect making their own rules, and scale for mainstream adoption
• Goal is to have a multitude of blockchain apps interconnected instead of competing for throughput on a single base layer

Cosmos Hub Staking FAQ

What is the name of the asset being staked? What is being used for?
The Cosmos Hub’s native token, ATOM, is used to stake, pay for transactions, and participate in on-chain governance.

Where can I explore the network and create a Cosmos Hub wallet?
Keplr: https://www.keplr.app/
Alternatively, you can create an ATOM Ledger Hardware wallet.

Why Stake Atom?
Initially, ATOM is staked to earn new issuance (“inflationary”) subsidies. It means that the supply of ATOM will increase, and stakers will capture the newly issued ATOM. Generally, you will earn around 10.5% annually on your staked ATOM, but that can change.

Stakers will also capture fees from network transactions, and as Cosmos Hub transaction volume increases, ATOM stakers will earn more than new issuance subsidies. The ATOM tokens also give stakers the right to vote on policy decisions on how the Cosmos Hub will operate and distribute treasury funds.

The main drivers of ATOM’s value could be more than transaction fees. ATOM holders should be able to somehow extract value related to the “assets under management” that the Cosmos Hub secures (via products like DeFi).

In a world of thousands of connected blockchains, credibility could be the scarcest resource, and the Hub aims to be the most credible. Owning staked ATOMs is ownership of the Cosmos Hub, giving ATOM stakers the entitle to set/change the rules of the Hub.

How long does it take to stake and unstake?
Staking is instant, while it takes 21 days to unstake once you initiate the unbonding process. During this time, you will not earn rewards. When the process is complete, you can transfer/trade your ATOM tokens.

How are rewards disbursed?
Rewards on the Hub is automatically distributed in each block. Figment is never in control of your rewards. Rewards are liquid, which means you can withdraw your rewards to use at any time, but you will need to delegate them if you want to add them to your existing stake. Reward are not automatically staked.

Can I lose potential staking rewards?
Your potential rewards depend on validator performance. When your validator is down for over approximately 20 hours (i.e., “jailed”), you will not be earning staking rewards.

What is the rate of new issuance (aka "annual inflation") for ATOM? How does the token supply change?
The new issuance (“inflation”) rate is around 9% of the total supply. When less than 67% of the supply is staked, the rate gradually increases to a maximum of 20%. When over 67% of supply is staked, the rate gradually decreases to a minimum of 7%. Currently, the Cosmos Hub pays delegators roughly 7% rewards in ATOMs per year. The annual inflation rate changes depending on the percentage of the network tokens staked. When less than two-thirds of all tokens are staked, inflation gradually increases up to 20%. When over two-thirds of tokens are staked, the network inflation rate gradually decreases to 7%.

Do I maintain custody of my ATOM tokens? Who or what controls my staked ATOM token?
Figment has partnerships with many top-in-class custodians. For inquiries, please contact sales@figment.io. The Cosmos Hub protocol takes control of your ATOM tokens while you are staking. If you unbond your tokens, this process will take 21 days before the protocol returns your tokens to you. While your ATOM tokens are staked, you may participate in on-chain governance by voting on different proposals.