A little bit of chit-chat
The deployment of the Liquid Staking Module (LSM) is set for this week, enabling over 60 million ATOM tokens to be staked while retaining their liquidity. Ultimately, the LSM's objective is to encourage ATOM staking, as a higher percentage of the token supply staked leads to reduced inflation rates.
Straight Outta of Polkadot
Composable Finance has submitted a proposal to join the Atom Economic Zone (AEZ) and launch a consumer chain using Interchain Security (ICS) from the Cosmos Hub. The proposal aims to enhance the Composable chain's security and expand its Inter-Blockchain Communication (IBC) capabilities, making it a hub for chain-agnostic transactions. If approved, Composable will share 20% of IBC bridging fees and allocate 20% of inflationary staking rewards with the Cosmos Hub. This partnership will also enable Cosmos Hub validators to participate in capturing Maximum Extractable Value (MEV) through order flow auctions.
Composable's vision includes extending IBC capabilities, expanding security, and utilizing IBC as a mechanism for orderflow routing. They plan to launch stATOM as a restaked asset and explore rollup settlement on the Cosmos Hub. Composable aims to become a secure hub for cross-ecosystem IBC, facilitating liquidity, DeFi, NFT use cases, and cross-ecosystem traffic. The proposal emphasizes a commitment to annual reviews to ensure mutual benefits for both parties. Currently, Composable runs a parachain in both Polkadot and Kusama.
An invitation for you
We wanted to invite the whole community to the zkSummit 10, which will take place on September 20th in London, featuring the brightest minds in the Zero Knowledge space.
For this edition, we are proudly sponsors of the event.
Bear in mind that this is an invitation only event, so make sure you apply to attend in the button below. Spots are filling up quickly.
Aligning money with the vision
In a recent forum post, Noam Cohen from Binary Builders, introduced the concept of the ATOM Alignment Treasury (AAT). The proposal aims to create a structured infrastructure that aligns with the Cosmos Hub's objectives, particularly in supporting the ATOM Economic Zone (AEZ) without exerting selling pressure on the ATOM token.
The AAT's main objectives include promoting AEZ growth by providing liquidity to DeFi protocols, strengthening financial alignment with consumer chains, and increasing the decentralization of the Hub's voting power. The proposed use cases cover consumer chain token swaps, liquidity injection in AEZ projects, and receiving payments from consumer chains.
The post outlines potential solutions for the AAT, such as dividing the treasury into separate accounts, mechanisms for managing funds, and methods for executing expressions of intent. It also discusses the governance, implementation, and potential user participation aspects of the AAT. Here are some of the pros and cons of the AAT according to the post:
Pros:
Alignment with Objectives: The AAT proposal aligns with the Cosmos Hub's objectives of supporting AEZ growth and achieving financial sustainability.
Liquidity Provision: The AAT could significantly enhance liquidity provision in the AEZ, fostering a more frictionless economy and benefiting ATOM holders.
Community Involvement: The proposal emphasizes community involvement, ensuring that decisions about fund allocation and voting power remain decentralized and transparent.
Cons:
Complexity: The implementation of AAT and its associated mechanisms may be complex and require careful development and management.
Regulatory Risks: The proposal acknowledges potential legal risks associated with allowing users to bond tokens, which could affect the project's feasibility.
Resource Allocation: Developing and maintaining AAT requires significant resources and ongoing community support.
In conclusion, the introduction of the ATOM Alignment Treasury could be a significant step toward enhancing the Cosmos Hub's capabilities and promoting alignment within the AEZ. However, its success will depend on community consensus and effective execution of the proposed ideas.
Wrap Up
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