A little bit of chit-chat
There is a debate going on regarding the name of the ecosystem. Some people are in favor of calling it the "Cosmos Ecosystem" while others support the "Interchain Ecosystem" name. The supporters of the former believe that all chains built using the Cosmos SDK should be considered part of the Cosmos Ecosystem. On the other hand, those who favor the latter argue that using a more neutral term like "Interchain Ecosystem" will help align all the chains better. Additionally, it will allow the Cosmos Hub to regain the Cosmos brand.
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A new block design for Osmosis
A proposal has been posted on the Osmosis community forum asking for feedback on a new architecture for blocks. The Block SDK 1 redesigns blockchain architecture by dividing blocks into distinct "lanes," each dedicated to handling specific transaction types according to unique rules. This lane-based approach aims to streamline transaction processing by segregating different transaction activities into designated areas, each with a defined space limit. This structural reconfiguration enables transactions to be processed sequentially lane by lane during block proposal and verification stages, which may enhance organisational efficiency.
The SDK also introduces a "top-of-block auction" feature, positioned within its own lane, designed to refine the ordering of transactions within a block. Participants can submit transaction bundles through a newly introduced AuctionTx type, containing only the MsgAuctionBid message. Bidding can be executed via a dedicated AuctionHouse smart contract or through the Msg type, with specific auction parameters including a maximum bundle size, a required minimum reserve fee, and a minimum bid increment, all aimed to maintain orderly transaction placement.
The inclusion of this feature in the Osmosis platform could influence pricing dynamics by accelerating arbitrage resolutions and establishing new revenue models. About 95% of the auction proceeds are allocated to an escrow account, managed by community governance for potential reinvestment or token burn mechanisms, while 5% is distributed to validators to encourage efficient block production. Additionally, this system allows for precise transaction filtering by validators, potentially enhancing network throughput and integrity. The exploration of zero-fee transaction lanes for particular actions like staking rewards claims and governance voting is considered, which could possibly increase community engagement by lowering participation barriers.
Community feedback on the Block SDK 1 is mixed, with interest in its new lane-based transaction processing, similar to systems already in production on other chains like Neutron and Juno. Discussions focus on the "top-of-block auction" feature, comparing its potential for handling interchain arbitrage against existing systems like ProtoRev. Questions are raised about its efficiency and the strategic management of transactions on the blockchain.
There is also debate about the distribution of auction proceeds—95% to a community-governed escrow and 5% to validators. The community is evaluating whether these funds could better serve the protocol by directly generating real yield and reducing inflation instead of funding new projects. Clarifications about the 5% reward for validators are sought, specifically its distribution mechanism and the advanced transaction filtering capabilities, exploring how validators might prioritise transactions to enhance network efficiency and integrity. These discussions indicate a keen interest from the community in shaping the platform's development and optimising its economic model.
Wrap Up
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