Original author: Morty, Deep Tide TechFlow
Original author: Morty, Deep Tide TechFlow
Original editor: Miko
From September 26th to 28th, the Cosmoverse conference was successfully held in the Colombian city of Medellin, aiming to let the South American encryption community better understand the Cosmos ecosystem. The most anticipated thing is that at this conference, Cosmos released a brand new 2.0 white paper.
Deep Tide TechFlow brings you the latest interpretation of the white paper.
The white paper first reviews the previous glory created by Cosmos through Tendermint, IBC and SDK. After realizing the low adoption rate of the Cosmos Hub network and the low utilization of ATOM tokens staked on it, contributors hope to change this situation through Cosmos 2.0.As Zaki, a core development member of the IBC protocol, said in his speech at the conference,
"Today's ATOM is MEME in the Cosmos ecosystem, it can do more."
In my opinion, the biggest problem with the Cosmos ecology or ATOM is the Cosmos Hub, which is the "economic center of the Cosmos ecosystem" and aims to be the glue that connects all blockchains and provides valuable services. Token of Cosmos Hub, but unfortunately, the development of Cosmos Hub is not satisfactory.On the one hand, many Cosmos leaders opt out of the Hub and use the Cosmos SDK to build their own chains, on the other hand, they can indeed skip the Hub completely and develop smoothly, so to speak,
The Cosmos Hub has become a victim of the success of the Cosmos ecosystem.How to change all this? to this end,Cooperating with Cosmos' newly launched inter-chain safety margin expansion, inter-chain scheduling, ATOM's new token economics, and ATOM pledged liquidity certificates, etc., to form a catalyst to accelerate the development of the ecological flywheel and enhance the connection and interaction between chains , ultimately promoting the Cosmos ecology to become a resilient multi-chain ecology.
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A Comprehensive Interpretation of Cosmos 2.0: From a Loose Alliance to an Economic Community
In the public Cosmos stack, we saw two new modules, Interchain Scheduler and Interchain Allocator.
Interchain Scheduler is a cross-chain block space marketplace in Cosmos that generates revenue from cross-chain MEV.With the explanation of Ethereum.org, MEV can be understood as"The maximum value that can be extracted from block production over standard block rewards and gas fees by including, excluding, and changing the order of transactions in a block"
, high-frequency cross-chain behavior in the Cosmos ecosystem drives opportunities for maximum extractable value (MEV).
Specifically, a willing Cosmos blockchain could sell a portion of its block space to the interchain scheduler; the latter would then issue NFTs representing block space “reservations” that would be auctioned off at regular intervals, and possibly even trade on the secondary market. The original blockchain will then receive a portion of the proceeds. According to the white paper, the interchain scheduler will complement (rather than replace) the off-chain MEV relay, facilitating competition.
Interchain Allocator (inter-chain allocator), aims to simplify the economic coordination of the entire Cosmos network, accelerate the acquisition of users and liquidity of Cosmos projects, while ensuring ATOM's status as the network's reserve currency.
A Comprehensive Interpretation of Cosmos 2.0: From a Loose Alliance to an Economic CommunityTo sum it up:
The biggest significance is that the Cosmos Hub will generate income from cross-chain activities by creating a block space market and charging matching fees. You must know that the current Hub actually has no income.
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Securely capture ATOM value from interchain
Interchain Security is one of the highly anticipated upgrades.
For applications created based on the Cosmos-SDK, security is always a fundamental issue. For those large application chains with a large number of users, such as the previous Terra, this is not a big problem.If a newly launched application is secured by token stakers with a market cap lower than the TVL on the chain, it is at risk of being attacked.
therefore,therefore,Interchain Security allows these application chains to rent security from the Cosmos Hub, only need to pay a certain percentage of the transaction fee, these application chains will be able to get the security provided by the validators of the Cosmos Hub
A Comprehensive Interpretation of Cosmos 2.0: From a Loose Alliance to an Economic Community
Interchain Security can be used in the following areas: Rollup Settlement (a canonical Rollup settlement system and scaling solution when external data availability providers publish fraud evidence), IBC multi-chain routing, chain name service (Cosmos version of ENS) , Multiverse (can be understood as a test network), etc.
The launch of Interchain Security makes Cosmos Hub a security hub and helps ATOM capture value from the security requirements of other application chains.
Additionally, another way ATOM tokens can accumulate more value is by utilizing Liquid staking.today,ATOM holders can earn interest by staking their tokens with validators"Liquid staking ", but doing so involves locking the tokens to an address on the blockchain where they cannot be sold, at least for a period of time, only provided by third-party applications
At the conference, the core developer Buchman said, "Cosmos Hub will soon incorporate Liquid staking into the core of the network code. With the native Liquid staking module, it will provide a better user experience. Now ATOM can start to become more liquid Even though it already provides security, we can start to provide new ways to connect the security and liquidity of ATOM with other tokens launched in the ecosystem.”
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ATOM New Token Economics
A more subjective observation is that when it comes to Cosmos, everyone praises the SDK and some ecological projects, but complains about ATOM.One is high and unstable inflation
, the current ATOM inflation rate is between 7% and 20%, depending on the percentage of staked ATOMs as a percentage of the total supply. In March 2019, the total supply of ATOM was about 214 million, and the current circulation of ATOM tokens exceeds 292.5 million, an increase of about 36.68%.The second is the lack of value capture methods
, which is in stark contrast to the Polkadot ecology. Although the Polkadot ecology is not as vigorous as the Cosmos ecology in general, DOT can firmly absorb the value of the entire ecology through parachain auctions.For example,
If Polkadot is a central federation, then Cosmos is a loose federation.
The new ATOM token economics will change its number of issuance and value capture, and the issuance of ATOM will be adjusted into two stages: transitional stage and stable stage.36-month transition period, starting with 10 million ATOMs issued per month
, if this is approved and implemented immediately, the inflation rate will soar in the short term, reaching 40% briefly, and then the inflation rate will steadily decrease until it reaches a monthly circulation of 300,000 ATOMs, effectively reducing the inflation rate of ATOMs to 0.1%.
A Comprehensive Interpretation of Cosmos 2.0: From a Loose Alliance to an Economic Community
After entering the stable phase, through Interchain Security, part of the transaction fees and inflation from each application chain will be sent to the issuance module of the Cosmos Hub to pay for the security expenditure of all chains, replacing the current issuance subsidy.Simply put, it is
White Paper 2.0 replaces the token inflation used to incentivize validators and stakers through Interchain Security, and instead rewards validators and stakers with the resulting security fees.Intuitively, the rewards for validators and stakers will be smaller. However, in order to enhance the capital efficiency of ATOM, Cosmos launched the ATOM Liquidity Collateral Certificate Protocol. this means,
Users can obtain liquidity by staking certificates, so as to participate in more on-chain activities, such as participating in more DeFi activities.
A Comprehensive Interpretation of Cosmos 2.0: From a Loose Alliance to an Economic Community
Inflation rewards and Interchain Allocator value distribution will directly point to the Cosmos Hub Treasury, which is the main driver of new projects and long-term ecological development. The goal is to establish a resilient economic system within the Cosmos ecosystem.first level title
Summarize
SummarizeAt the end of the Cosmoverse speech, core developers Buchman and Zaki said,The development of the Cosmos Hub will depend on ATOM holders, who can vote for or against any changes to the blockchain.
Judging by the reactions on the forums and on Twitter so far, most people are optimistic.The most optimistic is Zaki, said
"New features of the Cosmos Hub will make EIP-1559 look like a joke", also titled his presentation "$1K ATOM LFG".
Secondly, we have also seen some voices of doubt, mainly focusing on the 36-month transitional period. They believe that the transitional period is actually a new round of financing for Cosmos Hub. Assuming that the mortgage ratio remains unchanged, it will raise more than 37 million for Cosmos Hub. tokens (currently worth $525 million), diluting current ATOM token holders.But in general, we still see that the Cosmos Hub has a way to actually generate income, and ATOM has more value capture. It is no longer a complete loose confederation, but more like an economic community, just like Mindao’s Cosmos 2.0 white paper The evaluation is the same:
