Key highlights:

Cosmos recently capped its yearly ATOM inflation rate from a hefty 14% down to a more modest 10%.

The AI model predicts this supply cut could supercharge valuations, potentially shooting the price up over 200% in the next few years.

Interoperability is the name of the game for Cosmos, and as more blockchains connect together their technology should become increasingly valuable.

Cosmos, one of the leading interoperability blockchain platforms, recently approved a proposal to reduce the yearly inflation rate of its native ATOM token from 14% to 10%. According to advanced AI systems analyzing historical price data, this reduction in new token issuance could trigger a significant rally in ATOM's value over the coming years.

Proposal 848 on the Cosmos Hub governance forum suggested decreasing the maximum yearly inflation to help boost security long-term without overspending. The measure passed with 41.1% of votes versus 38.5% against, a remarkably close margin.

We voted YES on @cosmos Hub Prop 848 ---- This seems to be a controversial proposal, but in our view, it shouldn't be! The Cosmos ecosystem is maturing, and inflation economics need to mature too. Double digit inflation is not necessary for security, weakens ATOM price long…

— Zero Knowledge Validator (@ZKValidator) November 17, 2023

Some Cosmos insiders feel this was an important step. As one validator pointed out on Twitter, "Double-digit inflation undermines ATOM price and discourages use in DeFi." Others opposed it as too abrupt a change that could hurt smaller players. But regardless of perspectives, reductions in circulating supply often benefit crypto assets over the long haul.

Let's take a look at how price prediction AI models developed by CoinCodex are interpreting this development. By analyzing enormous datasets of past cryptocurrency performance, these systems can generate surprisingly accurate forecasts. According to their number crunching, we could see the value of ATOM shoot upwards of 200% within the next few years thanks to reduced token generation.

A simpler model for a complex system

To be clear, predicting the price of any cryptocurrency is an immense challenge. Blockchains like Cosmos exist within sprawling global economic networks incorporating government policies, speculation cycles, technology adoption trends, and countless other variables. No model can capture every nuance.

However, by focusing on core statistical relationships uncovered in previous market movements, AI forecasters can paint a rough picture of potential pathways. They've observed that reductions in inflation commonly precede price booms, as supply tightens to meet demand.

ATOM price prediction 2025: Potential 3x gains ahead?

According to CoinCodex's AI, the most likely range for ATOM in 2025 is between $12.26 on the low end climbing all the way up to $30.46 at the top of the range. If it reached the upper target, that would represent a gain of over 225% from today!

Admittedly, predicting prices three years out involves many assumptions. But the positive implication is clear - by taking proactive steps to responsibly manage inflation now, the Cosmos ecosystem is positioning itself for strong long-term growth. As more real-world uses emerge for inter-blockchain communication, a reduced supply schedule could supercharge valuations.

Of course, everything depends on ATOM continuing to deliver on its technological and adoption roadmaps. The projection also assumes overall market conditions remain upbeat. But even averaging the low and high estimates, 2025 is shaping up to be a very good year based on the progress being made.

Not financial advice, of course, but if you believe in Cosmos' future, these figures suggest it may be wise to stack some extra ATOM bags before takeoff. At a minimum, governance changes like limiting new token generation illustrate the project's dedication to thriving for the long haul.

How does ATOM compare to other major cryptos?

A recurring question for investors is how different blockchain assets stack up against each other. Coincodex's system analyzes cross-correlations to shed light here. It finds ATOM is most positively synchronized with movement in ICP, TRX, BTC, DOGE, and PI.

This aligned movement may reflect similarities as smart contract platforms prioritize scalability and performance.

Both technical correlations and Cosmos' compelling vision set the stage for it to potentially outpace many major players percentage-wise through 2025 according to AI models. Of course, doing your own research remains crucial before allocating funds anywhere.

The potential pitfalls on the road to $30 ATOM

While the charts paint an exciting picture, some short-term risks could upset the apple cart along the way. For one, broader macroeconomic instability may dampen the appetite for risk assets across the board. Another possibility is competing chains like Ethereum achieving faster adoption or scaling solutions.

Regulatory crackdowns also loom as wildcards, no matter the project's merits. And of course, unforeseen technical or governance issues within Cosmos itself could undermine confidence goals. Even the most well-designed networks require steady execution and care.

For all these reasons, the most battle-tested investors generally avoid going "all in" on any single opportunity and construct diversified portfolios instead. Volatility will occur- but those who accumulate quality projects during dips tend to do well over the long haul according to history.

By making prudent changes like limiting inflation, projects give themselves the best odds of weathering storms. If Cosmos continues strengthening its value proposition while navigating short-term risks intelligently, the 2025 targets floated by predictive AI could end up materializing ahead of schedule. Exciting as they are, patience and risk management will be key for all stakeholders.

The bottom line: Significant room for ATOM to grow?

To wrap up, governance moves capping Cosmos' monetary policy open what AI forecasters see as a new chapter for ATOM prices. Their data-driven analysis points to a greater than 200% surge potentially playing out by 2025 if fundamentals maintain pace. Achieving a high correlation with thriving Layer-1 networks also bodes well.

Of course, predictions are just educated guesses- the truth will unfold organically in real-time. But barring unforeseen pitfalls, Cosmos seems to be ticking boxes that historically precede explosive runs according to statistical evidence. Innovation, adoption, and limited new supply lend fuel for the coming price discovery journey.

With interoperability playing an increasingly prominent role in the blockchain landscape, ATOM appears well-positioned for continued impact. Although short-term risks and patience remain crucial, AI number crunchers see multiple catalysts aligning. The next few years could well reward those who back Cosmos' long-term vision today.

Crypto exchange dYdX has published open-source code for its new Cosmos-based blockchain.

The new code includes “protocol, order book, interface and more,” the release said. The publication of the code is intended to pave the way for the launch of the main network, which is organized by the dYdX Decentralized Autonomous Organization (dYdXDAO) SubDAO on Operations.

1/ It’s finally here 🎉Today, we’re proud to present and fully open-source the completed dYdX Chain!This is the next chapter for dYdX and we’re so excited that it’s here.Let’s get into the details:https://t.co/ydil2jkqJs

— dYdX (@dYdX) October 24, 2023

The dYdX team is set to launch a new dYdX blockchain based on Cosmos (ATOM). They claim it will allow them to decentralize the exchange’s order book, taking the protocol out of the hands of the development team and making it truly decentralized. DYdX currently runs on the StarkEx solution, the second layer of Ethereum (ETH).

The new code will allow the dYdX infrastructure to be “run by DeFi enthusiasts worldwide.” Once the mainnet launch is complete, the dYdX development team “will not use any part of the infrastructure to deploy the new dYdX blockchain.”

You might also like: dYdX winds down Canada operations, more exchanges exit North America markets

dYdX mainnet launch

The team has not announced an official mainnet launch date. Instead, the developers ask to “check out the dYdX Operations subDAO blog post” to learn more.

Before this, dYdX Operations proposed a phased launch of the main network. The proposed alpha phase will allow token holders to stake their tokens and receive staking rewards, but trading will not be available. The beta phase will allow for trading and further testing. The announcement does not indicate launch dates for these phases.

In March 2023, the company announced the launch of a test network. The platform will allow development teams to create their networks using Cosmos SDK tools.

At the same time, independent blockchains can interact with each other. dYdX explained the reasons why they are abandoning Ethereum. The main factor is the lack of scalability.

You might also like: dYdX Trading transitions to public benefit corporation, foregoes v4 trading fees

According to Foresight News, Cosmos founder Jae Kwon has expressed his thoughts on the recent approval of the 'ATOM Inflation Reduction: Setting the Maximum Inflation Rate to 10%' proposal. Despite voting against the proposal, it was ultimately passed. Kwon believes that the final plan should include integrating ATOM with ATMO/ATMO1, preventing a massive sell-off of ATOM and a total collapse. Instead, it would allow ATOM to participate, but with improvements to the README content.

Kwon announced plans to fork 'Cosmoshub4' and create a new network called 'AtomOne'. This network will use the current software but will transition to a minimum viable product managed by its own development team, aiming for greater decentralization than Gaia. AIB will not be the only participant in this process.

As reported by Foresight News, the Cosmos Hub community voted in favor of the 'ATOM Inflation Reduction: Setting the Maximum Inflation Rate to 10%' proposal, with 41.1% support and 31.9% opposition. The maximum inflation parameter for ATOM will be reduced from 20% to 10%, bringing the current inflation rate down to 10% and reducing the annual staking interest rate from 19% to 13.4%.

Cosmos' founder Jae Kwon favours splitting the blockchain into two following a decision by the community to reduce Cosmos' native token ATOM's inflation to 10%.

The hard fork, dubbed AtomOne, could be bullish for ATOM token, according to one observer.

ATOM, the native coin of Cosmos Hub, is nursing moderate losses a day after Comos' founder Jae Kwon called community members to split the blockchain into two, with one observer hailing the potential hard fork as a bullish outcome for the investor community.

"Let's coordinate a split," Kwon said Sunday, following a decision by the community to the Cosmos community to approve a proposal to reduce ATOM's inflation to 10% from 14%. Cosmos Hub is an intermediary among all independent blockchains created within the Cosmos network. ATOM powers the Cosmos ecosystem of blockchains programmed to scale and interoperate with each other.

The so-called proposal 848, approved with 41.1% support for the reduction from the participating voting power and 31.9% against it, said that ATOM's double-digit inflation rate represented overpayment by the Hub for security and disincentivized ATOM's use in decentralized finance. The approved change is projected to bring down Atom's annualized staking yield from approximately 19% to about 13.4%. Staking refers to locking coins in a blockchain in return for rewards.

Kwon, however, wasn't impressed and called for the hard fork.

"Despite our voting [against the plan]… 848 has ended up passing, something that isn't too surprising (though it would be good to know whether the later votes came from newly purchased ATOMs)," Kwon said on X.

Kwon referred to the hard fork as AtomOne, which would fork the Cosmos Hub, calling for a final plan whereby the forked chain would support ATOM token along with the native ATOM1.

"I believe that the final plan should include an integration of $ATOM and $ATMO/$ATOM1 so that instead of mass selling $ATOM and collapsing it all, we allow participation from $ATOM , but what is in the README can be improved. Tokenomics people take a shot," Kwon said on X.

We will just fork "cosmoshub4" so it will be the current software, but we will have our own plan and development teams (more decentralized than Gaia) for managing the transition toward a minimal final product. AIB will not be the only participant, all who voted NO is welcome.

— antechristus #343 (@jaekwon) November 25, 2023

According to X user "John Galt," an expert on Comos and head of the strategy at Stride Zone, a potential hard fork could resolve years of community infighting and bode well for ATOM token holders.

"A fork would be very bullish. For years, political tension has impeded the development of Cosmos Hub. Most notably when the ATOM 2.0 proposal was vetoed in the Fall of 2022," Galt said on X. "Without Jae's conservatism, Cosmos Hub could be more innovative."

Besides, Galt expects the hard fork to lead to the biggest airdrop for ATOM and could result in a massive increase in trading volume for both ATOM and ATOM1 tokens.

Airdrops involve blockchain-based projects and developers sending free tokens to the communities as part of a broader marketing initiative. When a chain splits, the native coin of the new blockchain is usually airdropped to token holders from the original blockchain.

"Jae is calling the new chain AtomOne (ATOM1). Most of the ATOM1 allocation would go to ATOM stakers pro-rata their amount. Unclear if liquid ATOM is included," Galt said.

Still, as of writing, ATOM traded 3.5% lower on the day at $9.59, according to CoinDesk data. The cryptocurrency peeped above $10 over the weekend but failed to establish a foothold above the three-week-long resistance. The weakness perhaps stems from bitcoin, the industry leaders, struggling to get past the $38,000 mark.