The Akash Network is a DePIN (Decentralized Physical Infrastructure Network) built to enable a cost-effective decentralized cloud computing marketplace that competes with the likes of AWS, Azure, and Google Cloud.

Similar to other DePIN projects such as Nosana and Aethir, Akash is used primarily to run inference on AI models, but it can also be leveraged to train AI models and supply the compute power needed by AI agents.

Unlike Nosana and Aethir however (which were built on the Solana blockchain), Akash has been operating on its own sovereign Cosmos-based blockchain (L1) since 2020.

At least, until now.

A New Home For Akash

In October, Akash co-founder Greg Osuri announced on X that the project would soon be seeking a new home.

The plan moved forward in mid-December when a proposal was submitted that "seeks proposals from established Layer 1 protocols to become the shared-security provider for the Akash Network."

Both official and non-official representatives of various blockchains including Algorand, MultiversX, Avalanche, and Ethereum have jumped at the opportunity to recommend their respective platforms as Akash reevaluates their decision to build on Cosmos.

Why Build On Cosmos?

At first, there were significant problems with monolithic blockchains.

In late 2017, the decentralized application (dApp) CryptoKitties brought the Ethereum network to a crawl, highlighting the blockchain's scalability issues.

The founders of Cosmos recognized that monolithic blockchains like Ethereum faced inherent scalability limitations due to running all dApps on a single shared chain. To address this, they developed the Cosmos SDK - a modular framework for building interoperable application-specific blockchains.

Leveraging the scalability and interoperability of the Cosmos SDK, Akash launched its sovereign blockchain in 2020. Their decentralized compute marketplace became fully operational March 2021, and the network has continued to execute on-chain governance and run its marketplace on this foundation ever since.

Problems With Akash's Sovereign Chain

Greg posted on X that a Cosmos-based appchain was the best decision for Akash five years ago, but "it's a different story today." Here are some of the problems with Akash's sovereign Layer 1 blockchain:

Inefficiencies - Significant resources are required to maintain Akash's security (validators, staking, upgrades). A large portion of AKT emissions goes toward this overhead (onchain security), rather than directly to rewarding compute providers.
Insufficient Economic Security - Akash's market cap is sitting at roughly $110 million, and low market caps lead to poor revenue-to-market-cap ratios, diverting significant token emissions to consensus security rather than productive incentives.
Stagnant Ecosystem - Despite several strong projects built on the Cosmos SDK (Sentinel, Jackal, and Stratos, for example), the broader ecosystem has faced criticism in 2025 for stagnation in the Cosmos Hub's development, and limited value accrual to the ATOM token.

In fact, the Cosmos ecosystem was removed from CoinGecko's top 20 most popular blockchain ecosystems in 2025, after ranking in the top 10 the previous year.

These are some of the reasons why Akash is seeking a new home. Greg has stated that the front-runners are currently Solana and Ethereum, with others under evaluation.

Solana's Key Advantages

Solana's founder (Anatoly Yakovenko) observed Ethereum's scalability struggles, highlighted by the CryptoKitties incident in late 2017. This contributed to his decision to design a new high-performance blockchain from the ground up.

Unlike modular, multi-chain approaches such as Cosmos, Solana is a single monolithic global state machine that incorporated innovations like Proof of History to achieve massive parallel processing.

In addition to its scalability, Solana appeals to Akash as a new home for a couple of reasons:

Better on-chain liquidity and trading volume - Akash could tap into Solana's billions in daily DEX activity, while bootstrapping pools (like AKT/SOL or AKT/USDC on Raydium) would be easier and more attractive for liquidity providers.

Leadership in DePIN — Prominent projects like Render and Helium have already made the migration to Solana, and more networks are following in their footsteps (see below), making it a clear frontrunner in DePIN.

Potential Risks of Solana

Although Solana hasn't experienced a major outage since February 2024, another unexpected network halt (due to congestion or unforeseen bugs) is still possible, though significantly less likely than in prior years.

One benefit of a sovereign Cosmos-based chain is that additional tokens can only be minted through governed inflationary mechanisms (via on-chain proposals). Also, there is no concept of "freezing" individual token accounts.

In contrast, if Akash (AKT) were redeployed as an SPL token on Solana, the new token could potentially allow unlimited minting or freezing of holder accounts if those authorities were enabled.

On a personal note, to maximize decentralization, resilience, and differing cultures, it would be nice to see DePIN projects spread out over a variety of blockchain ecosystems.

DePIN Migration To Solana, Base, and Peaq

Not only have large DePINs such as Helium and Render migrated to Solana, but smaller projects have also been making the transition. For example, Geodnet and XNET, which originally launched on Polygon, have since migrated or expanded to Solana.

Although Solana is a top contender to receive Akash, it will have to compete with other platforms that are also up for consideration.

Base (Coinbase's optimistic rollup for the Ethereum mainnet), has also attracted DePIN projects such as DIMO, which recently expanded from Polygon, and World Mobile Token, which expanded from Cardano.

Finally, DePIN-focused blockchain Peaq has attracted projects such as Natix Network, Over The Reality, and ANyONe Protocol, and has several other projects building on it natively.

Once the core Akash team (in consultation with the community) narrows down or recommends a target blockchain, it should go through a formal onchain governance proposal, in which staked AKT holders vote either 'yes' or 'no' on the decision.

Until next time...

Does Akash's move to a new blockchain signal the end of the Cosmos ecosystem?

Although the Cosmos Hub itself appears to be experiencing development stagnation, several other Cosmos-based blockchains are still in active development, and benefiting from full sovereignty.

The move does highlight an increasingly competitive landscape in the DePIN space, as platforms such as Solana, Base, Peaq, and others work tirelessly to attract the best DePIN talent.

If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.

Sources

AEP-79: Akash on Shared Security
Akash Network Logo

DePIN Spotlight: Will Akash Abandon Cosmos For Solana?