The token itself is not used to pay transaction fees for using the hub as in other blockchains, which means that users do not have to buy a cosmos token to use it. The only utility of the token is that it can be staked providing security within the network (proof of stake) and for providing this security you will receive staking rewards in atom + commissions in other tokens paid as payment for transactions.
The token itself has a inflationary model of 7-20% per annum, which is also a negative factor (for example, the same Ethereum began to burn its tokens in order to reduce selling pressure, which allows the system to remain more stable in the long run)
The tokenomics has a positive side to it in that early investors have already gotten their tokens and sold them for a good profit, which suggests that there won't be much pressure from early investors in the future.
However, the team and the community are working on a new tokenomics that should add more use cases for the token and replace the inflationary model with a deflationary one. Show Less
1
