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Cosmos
$ATOM Institutional Flywheel
How the ATOM Institutional Flywheel spins

Seppmos
Researcher
Date
July 24, 2025
How the ATOM Institutional Flywheel spins
1️⃣ Enterprise chains build on the Cosmos SDK 🏗️
Banks, governments, payment networks, RWA issuers, and Web2 brands choose Cosmos tech to build their sovereign L1 chains
SDK modules (KYC/AML, privacy, PoA, Cosmos EVM, etc.) offer maximum flexibility and full control over their chains
Selective interop via IBC + fast finality & high throughput via CometBFT
2️⃣ Subscribe to Cosmos Hub Services ⚙️
Oracles (Slinky), IBC Eureka routing, cross-chain schedulers, vaults
"Pay-as-you-grow" model — no need to run the infrastructure themselves
Opt in and out of these services any time
3️⃣ Pay fees → Buy-back & burn $ATOM 💸🔥
Service fees are used to buy back and burn $ATOM
Increases buy pressure and makes $ATOM deflationary
4️⃣ $ATOM price rises, Cosmos narrative improves 📈💪
Higher price → higher staking rewards → stronger narrative
Positive optics attract more investors, liquidity, and enterprise interest
5️⃣ Reinvestment into Tech & IBC expansion
Development of new, customized SDK modules
Faster blocks & improved consensus via CometBFT upgrades
IBC Eureka expansion to every major ecosystem
→ Better tooling attracts the next wave of enterprises building in Cosmos
⚡ This self-reinforcing loop drives real revenue to $ATOM, creates constant buy pressure, shrinks supply, and continually upgrades the tech stack. The more businesses build in Cosmos, the faster the flywheel spins ⚛️🛞
Thanks for reading folks!
We hope this article helped you stay up-to-date with the latest developments in the Cosmos ecosystem.
Disclaimer
This article is intended to educate readers about certain topics and should not be considered financial advice in any way.