A little bit of chit-chat
The launch of the dydx public testnet chain is scheduled for July 25th. The public testnet will initially feature Bitcoin and Ethereum markets, showcasing the network's compatibility with these leading cryptocurrencies. However, the open-source software is expected to expand its offerings, with approximately 30+ markets anticipated as the network undergoes further upgrades.
Duality, a project focused on decentralized finance, has proposed integrating Duality v1 with the ATOM Economic Zone using Replicated Security. This integration aims to bring benefits such as a user-aligned DEX, reduced liquidity fragmentation, and growth of the Cosmos Hub community. The proposal ensures that all value created from the protocol will go back to the Cosmos Hub, with revenue sources including gas fees and MEV revenues benefiting ATOM validators and delegators. Governance will be conducted through ATOM, and liquidity providers will receive swap fees.
Grants from the lab
Osmosis has approved Batch 15 of grants, providing total funding of $189,000 to support various projects. This batch comprises five grants to enhance the user experience, expand community management tools, and provide financial insights through quarterly reports.
One of the grants awarded is for developing a Hummingbot connector, an open-source framework enabling sophisticated traders to connect and run advanced trading strategies on Osmosis, including support for Concentrated Liquidity. Another grant is dedicated to integrating Notifi's white-label notification services into the Osmosis front end, ensuring users receive real-time updates about product announcements, account alerts, and portfolio alerts for Osmosis and other applications built on the platform.
To facilitate community management and governance, the DAO DAO deployment grant will enable easy setup of token governance for apps deploying on Osmosis. Additionally, the Genie integration grant aims to simplify the creation of Web3 incentive campaigns by adding support for Osmosis, allowing apps and protocols to engage their communities effectively.
Lastly, Osmosis has allocated funds for Messari to produce four quarterly reports on the platform, providing insights into its financial state and raising awareness among crypto professionals and enthusiasts. Messari is a renowned provider of crypto market intelligence, and their reports will likely help the Osmosis community stay informed and make informed decisions.
Some concerns
Chorus One, a prominent validator in the Cosmos ecosystem, has recently voiced deep concerns regarding the centralization and revenue model associated with onboarding consumer chains to the Cosmos Hub. Their analysis found that the current model's fixed revenue share, coupled with limited opt-out options, may pose significant challenges to the economic sustainability of smaller validators. Chorus One has abstained from voting on related proposals until a more systematic and sustainable model is established.
According to their findings, 74.4% of validators on the Cosmos Hub have a voting power of 0.4% or less, while 52.7% have a voting power of 0.2% or less. They assert that the revenue generated from consumer chains, which is variable based on voting power, appears insufficient to cover the fixed costs associated with operating an additional node for a consumer chain. This discrepancy creates centralization pressures within the ecosystem. Small validators may be compelled to terminate their operations, prompting delegators to seek out larger and more stable validators. Furthermore, the economic constraints faced by smaller validators may force them to compromise on security measures, diminishing their overall attractiveness.
Chorus One's analysis emphasizes the need for a more sustainable and inclusive model for onboarding consumer chains to the Cosmos Hub. They urge the community to address these concerns and work towards establishing a revenue model that ensures the long-term economic viability of all validators. By fostering a more equitable and economically feasible framework, the Cosmos ecosystem can uphold its principles of decentralization and create a thriving environment for validators and delegators alike.
Wrap Up
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