Tokenomics

[COverS8]

I couldn't find tokenomics part anywhere, but I would like to express a few points mainly related to the value of Tokens, ATONE/PHOTON.

Value of a Token/s should be preserved (valued) and large price impacts avoided. If the value of the tokens is allowed to dilute too much, overall security (market cap) decreases, and if the price impacts are significant, interest in the token and its staking decreases.

AtomOne does not include any VC allocations, but here are a few observations about the dilution of the value of Cosmos and ecosystem tokens.

Staking Rewards

• Vested holdings (notable allocations) are locked, but staking rewards are not. These are dumped indiscriminately, which lowers the token's value right at the start of the project. Vested should mean Vested.

• The sale of staking rewards by validators and delegators should be limited, or some balancing mechanism should be devised, such as a dynamic burn mechanism that triggers under significant selling pressure.

• The Treasury DAO Delegation policy would ensure basic security through significant allocations for the Validators and mitigate risks during undelegation events. Delegators' participation should be encouraged in ways other than just staking rewards. While token volatility can never be completely controlled, minimizing price impacts and preserving value through various mechanisms is a good basic incentive but something additional could be thoughted to keep the staking threshold in the higher end.

Airdrop

• I suggest at least partial vesting for the airdrop. Additionally, a reward program for staking to enhance the hub's security over a longer period, for example, additional airdrops as a reward. This is not enslavement; this is caring about the project and commitment that should be required. Those who see it as an inconvenience are not genuinely interested in the project.

• The airdrop distribution should be direct to wallets without a claim process. No time windows or complicated processes. Scammers are always active with fake sites, and the community does not favor wallet signatures related to airdrops bc of.

There is a clear majority in the Cosmos community's airdrop fundamentals that see airdrops as:

a. Self-evident without the obligation to contribute
b. A right to dump if the project is not interesting
c. Clear airdrop farming with the goal of benefiting financially through dumping and either swapping the token to another token or exchanging it for fiat currency

I am not a tokenomics expert, but knowing the Cosmos project and its community very well, these practices have even killed projects by the dilution. The community cannot really be blamed for this, but rather what is allowed in the project.

Trading tactics belong to exchanges and trading platforms that offer various services for this purpose. The hub should not be a place where one aims to maximize personal financial gains, ignoring everything else, especially those genuinely interested in the project, its best interests, and its future, for the sake of the token's value and the project's expense and using them as an exit liquidity.

A strong characteristic of crypto is also investing, which should not be forgotten. It should not be assumed that anyone invests their funds into a project out of mere goodwill. Ultimately, every investor in a project values safety the most, from operations to assets, and cares about the preservation of value. By blocking the "sins" of Cosmos and the ecosystem, we create more appreciation and interest in the project from the hub's perspective. Future DApp chains and their product-market fit are equally important for vitality but is another story. However, the hub can inspire others with its example and also provide guidance to avoid these sins.