The first-mover advantage is fading, and Cosmos is facing a turning point in its fate

Author: Arjun | LI.FI, Bankless

Compiled by: Felix, PANews

Cosmos is at a crossroads in its development, and this pioneering blockchain is losing community support.

The reasons are as follows:

Old Grievances of Governance Issues

The Interchain Foundation (ICF), responsible for overseeing the Cosmos ecosystem, has seen a decline in community trust due to allegations of mismanagement, conflicts of interest, and lack of transparency.

These are not just rumors. Recent statements of distrust towards the ICF, along with calls for a comprehensive audit and leadership reform, highlight the seriousness of these issues.

This lack of transparency may indicate deeper problems within the ecosystem. Operational and organizational rigidity has led to low morale among developers and users, who are concerned about the endless delays and bureaucratic obstacles in daily development.

Moreover, there is an increasing disconnect between the builders of the ecosystem and its users. Builders are obsessed with pushing technological boundaries, which is a noble pursuit in theory, but many feel that they have somewhat forgotten the actual users of these technologies.

The core issue is the intangibility of Cosmos, which makes it difficult to resonate with users. This lack of clarity has led users to demand more from the ecosystem.

First-Mover Advantage Turns into Disadvantage

Cosmos has been at the forefront of shaping the future of cryptocurrency and blockchain development. It pioneered the vision of "application chains," a concept that is now central to modular blockchain theory and the idea of blockchain sovereignty.

However, today, Cosmos's leading advantage has vanished. The rise of Rollups on Ethereum and Celestia has provided developers with options similar to Cosmos application chains. Importantly, these solutions also come with the added benefits of mature communities and deeper liquidity pools.

Essentially, Cosmos has fallen behind in a competition where it once led.

Developers are pragmatic. They desire the flexibility that Cosmos offers but also crave the thriving ecosystem network effects provided by Ethereum and Celestia.

Ultimately, the success of Cosmos depends on its ability to create tangible value for users and nurture a thriving application ecosystem. If Cosmos fails to effectively address the challenges it currently faces, the community may view this period as a missed opportunity.

With its first-mover advantage and visionary roadmap, Cosmos has the potential to dominate the multichain space. However, without the necessary execution, this potential cannot be realized.

Crossroads

"Break free from the shackles of history and embrace the future."

The Cosmos ecosystem is undoubtedly at a crossroads. Internal strife, token downturns, and low community morale paint a bleak picture. People unconsciously view Cosmos as a failed experiment.

But let history not repeat itself. The core technology and vision of Cosmos are groundbreaking. They have inspired countless projects and laid the foundation for the future development of the industry.

The current moment for Cosmos is not a dead end but a crossroads. These are not insurmountable challenges. If Cosmos can address these issues, it can emerge from this crisis stronger than ever.

The path forward requires adjustments. Studying ecosystems like Ethereum, Solana, and Celestia can provide valuable insights. These ecosystems have demonstrated the importance of the following points:

• Governance and Trust: A transparent and accountable foundation is crucial. The ICF must prioritize rebuilding trust. Trust needs to be rebuilt bit by bit.
• User Focus: Everything starts with the user. Without a seamless user experience, Cosmos is just a beautiful "ghost town." Teams should prioritize building products that directly benefit users.
• Empowering Developers: Provide developers with the tools and freedom to create killer applications. Great technology deserves killer applications. Actively introduce the Cosmos stack to developers to attract a broader range of projects.
• Clear Vision: A compelling narrative is essential. Cosmos must clarify its unique value proposition: What problem are you solving? Why should people care?

Cosmos still has the opportunity to catch up, but now is the time to take action.