Governance Reports

Cosmos Bi-Weekly Governance Report — Week 14 & 15, 2024

April 18, 2024

This edition of our Bi-Weekly Governance report for the Cosmos Ecosystem will solely focus on the Cosmos Hub.

In the past few weeks, we have seen 3 major proposals go live on the Cosmos Hub. These proposals all play an important part in the future of the Hub and showcase the liveliness of the community and the contributors.

Table of Contents

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Permissioned CosmWasm on the Cosmos Hub

The passing of #895 marks a new era for the Cosmos Hub. Many have hailed this as a switching of guard from the ‘OGs’.

Previously, any attempt to implement CosmWasm on the Hub was met with great scepticism and backlash.

A few months back, the community saw one of the founders of the Cosmos Hub fork the Gaia code (Cosmos Hub codebase) into AtomOne after a proposal to cut Inflation and move away from the original idea of the Hub was passed.

A lot of people saw this as an opportunity to finally move past the old version of the Cosmos Hub and start implementing new features since those who didn’t agree with the new vision for the Hub technically should have forked off into AtomOne.

This is where CosmWasm comes in.

With the implementation of CosmWasm in a future upgrade, the Cosmos Hub can be expected to benefit from new features and possible tooling such as:

  • Allow the Cosmos Hub to leverage tools like @DA0_DA0 to improve reliability and efficiency in governance and consumer chain relations — to position the Cosmos Hub as a leader in restaking within the Interchain ecosystem.
  • Treasury Management: More refined strategies, financial oversight & allocation
  • SubDAOs: Specialisation to increase efficiency & accountability in certain gov processes
  • Interoperability: CosmWasm’s x-chain functions could enhance $ATOM utility & composability of dApps

We at Simply Staking voted YES to implement CosmWasm on the Cosmos Hub as we believe the benefits from the implementation can drive new value to the Cosmos Hub.

Partial Set Security — Next Iteration of ICS

The proposal to Implement Partial Set Security (PSS) is set to pass in the next few days.

The next iteration of Interchain Security (ICS) is set to address some of the shortcomings of the current implementation (Replicated Security).

PSS introduces a new feature called N.

The consumer chain can set this to determine the minimal level of security they want from the Hub.

For example, if a Consumer Chain puts N as 50, this means that 50% of the Hub’s security needs to be on the Consumer Chain so all Validators with the Top 50% of voting power will be opted-in automatically with others having the chance to opt-in after launch.

This addresses the shortcoming that running a new chain is costly and some validators might not be able to cover the costs of forcefully being added to a new chain (such is the case on Replicated Security).

There are Consumer Chains that can be fully Opt-In by setting the N to 0%.

For the initial launch of PSS, there will be governance approval required, however, the hope in the future is that this will be fully permissionless.

We wrote a small thread a while ago on this very topic!

We have voted YES on Partial Set Security as the improvements that it brings to the current iteration are key for the sustainability of validators and the possible ease of onboarding in the future through the permissionless creation of Consumer Chains.

DCF — Agoric Cosmos Hub Proposal

This proposal asks the Cosmos Hub community to approve moving 4% (eventually reaching 10% after a few months) of the Community Pool to be staked with Stride and Persistence (stATOM & stkATOM respectively).

That stATOM & stkATOM will then be deposited into a vault to mint IST that will then be used to provide liquidity to multiple IST pools:

30% to Osmosis IST/USDC Concentrated Liquidity pool

25% to Astroport IST/USDC.nbl pool

25% to a Quasar IST/USDC vault

20% to Shade IST/SILK pool

This will generate roughly 18–19% of Yield which is a great return considering that the funds are currently sitting idle.

We voted YES to this proposal as we believe that the value generation for the Hub apart from the deepened liquidity on some of the pools (which can provide a better user experience) can only be seen as beneficial.