Akash Network Deprecates Cosmos Chain, Eyes Solana for Future Infrastructure

Executive Summary

Akash Network plans to decommission its Cosmos-based app chain and initiate a search for a new foundational network, with Solana emerging as a strong candidate, indicating a significant strategic re-evaluation of its underlying infrastructure.

The Event in Detail

Akash Network, a decentralized computing marketplace for AI and cloud services, has announced its intention to deprecate its existing Cosmos SDK-based app chain. The project, which launched in 2020 and experienced growth, is now seeking a new foundational network. This decision follows nearly four years of operation within the Cosmos ecosystem, during which Akash achieved milestones in decentralizing development and funding. The primary drivers for this architectural shift are cited as growing code base complexity, increasing coordination challenges among contributors, and rising operational costs.

The search for a new network is guided by specific criteria: robust security, a high-quality community, deep liquidity, and significant growth potential, all while maintaining compatibility with the Inter-Blockchain Communication Protocol (IBC). Solana has been publicly identified as a strong contender for Akash's new home, suggesting a potential shift in allegiance for a prominent decentralized physical infrastructure network (DePIN) project.

Financial Mechanics

The AKT utility token underpins the Akash Network, driving governance, securing the network through a Proof-of-Stake system, and facilitating value exchange. Historically, the network has leveraged its Community Pool for development funding, as evidenced by proposals such as 211, 240, and 241, which bolstered funding for technical Research, Development, and Support administered by Overclock Labs. A previous effort sought community funding to support the migration of Akash Network to COSMOS SDK v0.47, covering work from April 2024 through an estimated September 2024 testnet completion, with Overclock Labs covering the remaining 48% of costs. This prior financial commitment for a Cosmos SDK upgrade contrasts with the current strategic decision to move away from the Cosmos chain entirely.

Business Strategy & Market Positioning

Akash Network is positioning itself for a new era, shifting from a resource network to a "supercloud" services network. This strategic evolution includes several key initiatives for 2025 and 2026, such as enabling Sovereign AI agents to operate independently with enhanced confidentiality, implementing on-chain provider incentives to strengthen the network by encouraging participation, and introducing a Managed Service Market (MSM) to allow developers to earn directly while maintaining open software. The vision also encompasses "Akash at home," allowing individuals to contribute spare computing power for AI workloads, thereby democratizing access and enhancing privacy.

This strategic pivot can be observed in the broader blockchain landscape, where projects adapt to market needs. For instance, MANTRA evolved from a multi-chain DeFi platform to a sovereign Real-World Asset (RWA) blockchain. Akash's decision to seek a new foundational network, potentially Solana, while retaining IBC compatibility, indicates a flexible approach to infrastructure that prioritizes scalability, efficiency, and market alignment for its decentralized compute offerings.

Market Implications

This migration could have significant implications across the Web3 ecosystem. For Akash Network, the move is intended to enhance its technical capabilities, potentially expand its user base, and accelerate future growth by aligning with a network offering robust infrastructure. For the Cosmos ecosystem, the departure of a high-profile DePIN project like Akash may prompt a re-evaluation of its "app-chain" model's long-term viability and attractiveness for major decentralized applications. It could also signal a perception among some projects that Cosmos's existing infrastructure or community does not fully meet evolving demands for decentralized AI and cloud services.

Conversely, if Solana is chosen as the new foundational network, it would represent a notable endorsement, potentially attracting more DePIN projects and fostering increased developer activity within its ecosystem. This development could solidify Solana's reputation as a viable and attractive platform for high-performance decentralized applications, further diversifying its project landscape beyond traditional DeFi and NFTs.

Broader Context

Akash Network's decision underscores a dynamic trend within the blockchain industry: projects continuously assess and optimize their underlying infrastructure to meet evolving technical demands and market opportunities. The move highlights the competitive landscape among Layer 1 protocols to attract and retain significant decentralized applications, particularly those in high-growth sectors like AI and decentralized cloud computing. The emphasis on security, liquidity, and growth reflects a mature approach to blockchain development, where foundational network characteristics are critical for long-term success and adoption of decentralized technologies.