What is Cosmos Hub (ATOM)?

The Founders

Cosmos was conceptualized by Jae Kwon, who published the original Tendermint whitepaper in 2014 describing a Byzantine fault-tolerant consensus engine. Ethan Buchman joined as co-founder and together they developed the Cosmos vision, publishing the Cosmos whitepaper in 2016.

The Interchain Foundation (ICF), a Swiss non-profit, was established to fund and oversee the development of the Cosmos ecosystem.

Development & Evolution

Tendermint Inc. (later renamed Ignite) was the primary development company building the Cosmos SDK and Tendermint consensus engine. The ecosystem has since become highly decentralized, with multiple independent teams contributing to different parts of the stack.

Informal Systems builds CometBFT (the successor to Tendermint), Strangelove contributes to IBC, and dozens of teams build appchains and tooling.

Key Milestones

• • 2014: Jae Kwon publishes Tendermint whitepaper
• • 2017: Cosmos ICO raises $17 million in 30 minutes
• • 2019: Cosmos Hub mainnet launches
• • 2021: IBC protocol goes live, enabling cross-chain transfers
• • 2022: Cosmos Hub begins transition to Interchain Security (ICS)

Inter-Blockchain Communication (IBC)

IBC is the protocol that enables trustless communication between Cosmos chains. It works by having each chain run a light client of the other chain, verifying block headers and transaction proofs cryptographically. IBC can transfer tokens, NFTs, and arbitrary data packets between chains.

Relayer nodes facilitate the communication by submitting proofs between chains, but they cannot forge or modify messages — the security comes from the cryptographic verification.

Cosmos SDK

The Cosmos SDK is a modular framework for building application-specific blockchains. Developers can choose from pre-built modules (staking, governance, bank, slashing, etc.) and create custom modules for their specific needs. This modular approach means teams can launch a sovereign blockchain in weeks rather than years. The SDK supports both Golang and, increasingly, Rust-based development.

CometBFT Consensus

CometBFT (formerly Tendermint Core) is the consensus engine that powers most Cosmos-based chains. It provides instant finality — once a block is committed, it cannot be reverted. CometBFT uses a Byzantine Fault Tolerant proof-of-stake mechanism where validators take turns proposing blocks and the rest vote. Blocks are finalized in about 6-7 seconds.

The engine can tolerate up to one-third of validators being malicious or offline while still functioning correctly.

Token Economics

ATOM has a dynamic inflation rate that adjusts based on the staking ratio, targeting 67% of tokens staked. When the staking ratio is below target, inflation increases (up to 20%) to incentivize staking; when above target, it decreases (minimum 7%). Transaction fees on the Cosmos Hub are distributed to stakers.

ATOM is used for governance votes on Hub proposals and can be staked with validators to earn approximately 10% APY.

1Compare providers

ATOM is listed on most major exchanges including Binance, Coinbase, Kraken, and OKX. Use coinvela to compare fees, payment methods, and trading features to find the best option for your needs.

2Create an account

Create an account on your chosen exchange and complete identity verification (KYC). Most platforms require a government ID and the process typically takes minutes to a few hours.

3Fund your account

Add funds via bank transfer, credit/debit card, or by depositing existing cryptocurrency. Bank transfers usually have the lowest fees.

4Buy ATOM

Navigate to the ATOM trading page, enter the amount you want to buy, review the total cost including fees, and confirm the purchase. You can place a market order (instant) or a limit order (at your target price).

Wallet Options

ATOM can be stored in several types of wallets:

• • Software wallets: Keplr (browser extension/mobile) is the most popular Cosmos wallet, supporting ATOM and most IBC-enabled chains. Leap Wallet and Cosmostation are also widely used alternatives.
• • Hardware wallets: Ledger devices support ATOM natively through Ledger Live and can be paired with Keplr for enhanced security. Best for large holdings.
• • Exchange wallets: Keep ATOM on the exchange for easy trading. Some exchanges offer staking directly. Convenient but you don't control your private keys.

Hardware Wallets

For maximum security, store your ATOM on a hardware wallet. Ledger devices support ATOM natively through Ledger Live and can be paired with Keplr wallet for staking and governance. Trezor also supports ATOM. Hardware wallets keep your private keys offline, protecting against hacks and malware.

Protect Your Recovery Phrase

Your recovery phrase (seed phrase) is the master key to your ATOM wallet. Write it down on paper and store it in a secure, offline location. Never share it with anyone or store it digitally. If you lose your seed phrase and your device fails, your ATOM will be permanently lost.

Decentralized Applications

The Cosmos ecosystem hosts a wide range of DeFi applications accessible via IBC. Osmosis is the largest DEX for swapping Cosmos tokens, dYdX offers perpetual futures trading, Stride provides liquid staking, and Injective supports advanced derivatives trading. ATOM is used as collateral and a trading pair across the ecosystem.

Staking for Rewards

ATOM staking is one of its primary use cases. Delegate your ATOM to a validator through Keplr or another wallet to earn approximately 10% APY in staking rewards. Staking secures the Cosmos Hub and gives you voting power in governance proposals. Note that unstaking has a 21-day unbonding period during which tokens cannot be transferred or traded.

Trading

ATOM is actively traded on major exchanges and can be used as a trading pair against other cryptocurrencies. The token is also widely available on Cosmos-native DEXs like Osmosis where it serves as one of the primary liquidity and routing assets.

Risks

ATOM, like all cryptocurrencies, carries significant risks. The token price is volatile and influenced by broader market conditions. ATOM's inflationary tokenomics (7-20% annual inflation) mean that non-stakers are diluted over time. Competition from other interoperability solutions (LayerZero, Wormhole, Polkadot) could reduce demand.

Governance disputes have historically caused uncertainty in the ecosystem. Never invest more than you can afford to lose.

Jae Kwon

Creator of Tendermint and original architect of the Cosmos vision. Jae published the Tendermint whitepaper in 2014, introducing one of the first practical Byzantine Fault Tolerant consensus algorithms for blockchain. He later stepped back from day-to-day Cosmos development and has been involved in various projects including GNO.land, a smart contract platform.

Ethan Buchman

Co-founder of Cosmos and founder of Informal Systems, a research and development company that builds and maintains core Cosmos infrastructure including CometBFT. Ethan has been instrumental in the technical development of IBC and the broader Cosmos architecture.

Peng Zhong

Former CEO of Tendermint Inc. (later Ignite). Peng led the company through a critical growth phase, overseeing the development of the Cosmos SDK and Tendermint Core. Under his leadership, the Cosmos ecosystem expanded significantly with the launch of IBC and the proliferation of appchains.

Regulatory Classification

ATOM is the native staking and governance token of the Cosmos Hub blockchain. Like most proof-of-stake layer-1 tokens, it is generally treated as a crypto-asset rather than a security in most jurisdictions, though regulatory classification continues to evolve globally.

Regulation by Jurisdiction

ATOM's regulatory treatment varies by country:

United States: ATOM is available on regulated US exchanges including Coinbase and Kraken. The SEC has not specifically classified ATOM as a security. US investors must report capital gains from ATOM trading to the IRS. Staking rewards are generally treated as taxable income when received.

Canada: ATOM is available on Canadian exchanges regulated by provincial securities commissions and registered with FINTRAC. Staking rewards and capital gains from ATOM are taxable. Canadian investors must report crypto transactions to the CRA.

European Union: Under MiCA regulations, ATOM would likely be classified as a crypto-asset. It is widely available on regulated European exchanges. Staking services may face additional regulatory requirements under MiCA's framework for crypto-asset service providers.

Australia: ATOM is available on Australian exchanges regulated by AUSTRAC. The ATO treats crypto assets as property subject to capital gains tax. Staking rewards are treated as income at the time of receipt.

ATOM is widely available on regulated exchanges globally. Its status as a proof-of-stake network token means staking rewards may have additional tax implications beyond simple capital gains. Always consult local tax authorities regarding the treatment of staking income.