A little bit of chit-chat
Cryptocito announced Cosmoverse 2024 will be taking place in Dubai on October 21 and 22 with the Hackmos Hackathon taking place within the same week. More info here.
EigenLayer x Cosmos x Ethereum
Last week, EigenLayer highlighted its strategic role in bridging the Cosmos and Ethereum blockchain ecosystems. According to their post, let’s see how it affects each of the ecosystems:
How does it affect Cosmos?
Firstly, it gains access to Ethereum's robust decentralized security and extensive user base, which is vital for enhancing the security and visibility of Cosmos projects. Secondly, this integration opens up exposure to a wider market, allowing Cosmos's innovative projects to attract more developers and users from Ethereum's established ecosystem. Lastly, the collaboration fosters opportunities for innovative partnerships, potentially leading to the development of new applications and solutions that leverage the strengths of both Cosmos and Ethereum.
What does Ethereum gain?
Ethereum, on the other hand, benefits from this integration by gaining access to the experimental and innovative technologies developed within the Cosmos ecosystem. This includes advanced ePBS solutions and unique chain-specific features that could enhance Ethereum's technological capabilities. Additionally, the integration with Cosmos through EigenLayer enhances Ethereum's interoperability, facilitating more efficient cross-chain interactions and transactions. This collaboration also allows Ethereum to diversify its technological portfolio, incorporating fresh ideas and solutions from the Cosmos ecosystem, potentially bolstering its overall functionality and resilience.
And how does EigenLayer make it possible?
It acts as a bridge between Ethereum and Cosmos by providing a platform for economic stake-sharing, which enables Ethereum's Layer 2 networks to utilize the validator innovations from Cosmos. This not only lowers the barriers to entry for collaboration but also facilitates access to a broader range of validator sets, essential for network security and integrity. EigenLayer's initiative creates a symbiotic relationship between the two ecosystems, allowing for the sharing of security models, user bases, and innovative technologies. This integration leads to a more robust and versatile blockchain environment, driving the overall growth and development of the blockchain industry.
Tweaking the floor
The Cosmos community is currently embroiled in a lively debate over a proposal to set the network's floor inflation rate to 0%. At present, 51.7% of the votes are against this proposal. According to the inflation mechanism's design, the inflation rate will naturally trend towards 0% once 67% of the supply is staked. This proposal has elicited a range of responses, showcasing the varied viewpoints within the community.
Stake Lab, the proposer of this change, contends that a 0% inflation floor would provide greater flexibility. They argue it allows stakers and investors to more precisely adjust the total percentage of bonded tokens, tailoring it to the incentives offered by the emission rate, especially in the absence of specific revenue from consumer chains. They also note that a scenario of 0% inflation would likely occur only if the entire token supply were staked, which they consider an improbable outcome.
Opponents of the proposal express concerns that a significant reduction in inflation could diminish ATOM's appeal to investors. They also raise the issue that reduced incentives might adversely impact smaller validators, potentially leading to a centralization of the network. Proponents, however, believe that future revenue generated through the Atom Economic Zone could adequately compensate for the absence of inflation rewards, thereby sustaining the network's attractiveness and viability.
Wrap Up
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