# ATOM 2.0 Issuance By [salveboccaccio](https://paragraph.com/@0xboccaccio) ยท 2022-10-26 --- ATOM 2.0 tokenomics were proposed on the 26th of September. Since then there have been 3 versions released (the last one (v1.2) was proposed last night). **The first ATOM 2.0 proposal released (v1.0):** * New issuance schedule starts at 10m ATOM per month and declines 10% per month over 36 months, until a steady rate of emissions of 300,000 ATOM per month is reached. This steady rate would go on indefinitely. * During the transition phase (first 36 months) of this issuance is given as a security subsidy to validators and delegators, the rest is given to the treasury. * ATOM issued to validators and delegators as the security subsidy remains at the same rate previous to ATOM 2.0 (~3m). This security subsidy declines over the transition phase, and stops at month 36. After month 36, MEV rewards from the Interchain Scheduler is distributed to validators and delegators, instead of the security subsidy through emissions. * The part of the ATOM issuance not given as a security subsidy will be given to the Cosmos Hub Treasury. (e.g. first month Cosmos Hub Treasury will receive 10m - 3.375m = 6.625m ATOM). This will be spent on growth, infrastructure etc. * The ATOM issued to the Cosmos Hub Treasury will decline from 6.625m to 300k over 36 months. During the steady phase following the first 36 months, 300k will be given to Cosmos Hub Treasury. ![](https://storage.googleapis.com/papyrus_images/5843ee24726a42680aa24676d5d549ccf1b5f888a5b3c20f379a41bbd1d59d3b.png) There would have been increased issuance in ATOM over the first 9 months, compared to the issuance rate for the original ATOM tokenomics. Since then there have been 2 more versions (v1.1 and v1.2) released. **The latest ATOM 2.0 proposal (v1.2), proposes that:** * New issuance schedule starts from the present rate (~3m per month) and declines to a steady rate decided by the community over 36 months. * Prior to the start of the new issuance schedule, a one-time issuance of 4m ATOM will be deposited to the Community Pool. This 4m ATOM will be spent on Cosmos Hub growth, infrastructure etc. * ATOM issued to validators and delegators as the security subsidy starts at the same rate previous to ATOM 2.0 (~3m). This security subsidy declines over the transition phase (first 36 months), and decreases at a fixed percentage until it reaches the community decided emission rate. After month 36, MEV rewards from the Interchain Scheduler are distributed (on top of the community decided emission rate) to validators and delegators. * 10 more tranches of 4m ATOM may be issued to the Cosmos Treasury at any time depending on ATOM holder vote. These would be spent on growth, infrastructure etc. **Notable Changes Between v1.0 & v1.2:** **Issuance to Treasury/Community Pool:** * In v1.0, approx. 6.6m ATOM is given to the Treasury in the first month, 5.5m ATOM in the second month and so on. This declines over the transition phase (first 36 months) until a fixed rate of 300k ATOM, which following the transition phase is emitted to the Treasury every month indefinitely. Under v1.0, approx. 55m ATOM would be issued to the Treasury over the transition phase, and 300k would be issued per month afterwards. * In v1.2, a one-time issuance of 4m ATOM is deposited to the community pool. After this, 10 more tranches of 4m ATOM can be issued to the Cosmos Treasury at any time depending on ATOM holder vote. Under v1.2, barring changes to the Cosmos Charter, 40m ATOM may be issued to the Cosmos Treasury, and 4m is issued one time to the Community Pool. \*These numbers and discussion ignored the 2-5% of emissions sent to the Treasury from the Security Subsidies - since they're negligible. **Issuance to Validators and Delegators:** * In both versions, ATOM issued to as validators and delegators as the Security Subsidy begins at the same rate it issues currently (approximately ~3m). * In v1.0 the security subsidy stops after the transition phase (first 36 months) and is replaced by the MEV rewards from the ICS. * in v1.2 the security subsidy declines to the community decided rate over the transition phase. MEV rewards from the ICS are distributed in addition to this community decided rate after the transition phase. --- *Originally published on [salveboccaccio](https://paragraph.com/@0xboccaccio/atom-2-0-issuance)*