Author: Jun, Bankless; Translated by: Baishui, Golden Finance
The Cosmos ecosystem is facing some existential issues.
Developers, investors, and users are sounding the alarm about the health of the ecosystem and the actions needed to correct its path forward.
Let’s unpack this drama and the community’s growing concerns about the future of the ecosystem.
Good old governance issues
The Interchain Foundation (ICF), which oversees the Cosmos ecosystem, has become a focus of growing tensions. Allegations of mismanagement, conflicts of interest, and a lack of transparency have surfaced, leading to a loss of trust in the community.
This is more than just gossip. Recent statements of no confidence in the ICF, along with calls for a comprehensive audit and leadership changes, highlight the severity of these problems.
This lack of transparency could be indicative of deeper problems in the ecosystem. Operational and organizational deadlocks are undermining morale among developers and users, who have expressed concerns about endless delays and bureaucratic roadblocks in day-to-day development.
Additionally, there is a growing disconnect between the builders and users of the ecosystem. Builders are obsessed with pushing the boundaries of technology, which is a noble pursuit in theory, but many feel that, at some point, they’ve forgotten about the people who actually use these things.
The core problem found was the intangibility of Cosmos, which made it difficult to resonate with users. This lack of clarity led users to demand more from the ecosystem.
First-mover disadvantage
Cosmos has been at the forefront of shaping the future of cryptocurrency and blockchain development. It pioneered the vision of “appchains,” a concept that is now at the core of modular blockchain theory and the idea of blockchain sovereignty.
Today, however, Cosmos’ lead no longer exists. The rise of rollups on Ethereum and Celestia offers developers similar customization options as Cosmos AppChains. Importantly, these solutions also have the added advantage of mature communities and deeper liquidity pools.
Essentially, Cosmos found itself lagging behind the competition it once led.
Developers are pragmatic. They want the flexibility that Cosmos offers, but they also crave the network effects of a thriving ecosystem that Ethereum and Celestia offer.
Ultimately, Cosmos’ success depends on its ability to create tangible value for users and foster a thriving ecosystem of applications. If Cosmos fails to effectively address the challenges it currently faces, the community may view this period as a missed opportunity.
With a leading edge and a visionary roadmap, Cosmos has the potential to dominate the multi-chain space. However, without the necessary execution, this potential remains unrealized.
Fork in the Road
“What can be done to free oneself from the burden of the past”.
The Cosmos ecosystem is undoubtedly at a crossroads. Internal strife, falling token prices, and low community morale paint a bleak picture. It’s easy to view Cosmos as a failed experiment.
But wait. Let’s not repeat history. Cosmos’ core technology and vision are groundbreaking. They have inspired countless projects and laid the foundation for the future development of our industry.
For Cosmos, these are not dead ends, but forks in the road. These are not insurmountable challenges. If Cosmos can solve them, it can emerge from this crisis stronger than ever.
The path forward requires course correction. Looking at ecosystems like Ethereum, Solana, and Celestia can provide valuable insights. These ecosystems demonstrate the importance of:
Governance and trust – A foundation of transparency and accountability is essential. ICF must prioritize rebuilding confidence. Trust needs to be rebuilt bit by bit.
Focus on users — It all starts with users. Without a seamless user experience, Cosmos is a beautiful ghost town. Teams should prioritize building products that directly benefit users.
Empower developers - Give builders the tools and freedom to create killer apps. Great technology deserves killer apps. Actively educate builders about the Cosmos stack to attract a wider range of projects.
A clear vision — a compelling narrative is critical. Cosmos must articulate its unique value proposition — what problem are you solving? Why should anyone care?
Cosmos has a chance to catch up, but the time to act is now.
