As we head into June, let's take a look at where the Cosmos Hub is at with staking, rewards, spending, governance, and power distribution.
I take a snapshot for these metrics on the 20th day of each month.
There are ~1.35M more ATOMs staked this month than last, but the ratio of ATOM staked has hardly changed.
As long as more than 67% of the supply is staking, inflation will remain fixed at 7.00%. However, as I mentioned in this updated article, inflation will still vary based on block times, and will only begin to increase if under 67% of the supply is staking.
Staking rewards have stabilized, and you can expect ~8.78% in annual rewards on the amount you have staked.
The Community Pool currently has a balance of ~365.7k ATOMs as of May 27, 2020, with 25k ATOM being spent from the pool via Prop25.
After much discussion, Prop25 passed on May 26. This means that the CosmWasm team is has now been funded 25,000 ATOM by the Cosmos Hub to enable limited smart contract ability, which will be controlled by ATOM stakers via governance. Hub Governance will control code upload, contract instantiation, upgrades, and destruction (if needed). What can these smart contracts do for the Hub?
With the upcoming launch of Inter-Blockchain Communication (IBC), the Hub will need to coordinate a governance vote and upgrade to connect each new Cosmos zone to the Hub. CosmWasm is supposed to enable dynamic IBC (dIBC) so that the Hub can form these connections without having to disrupt the system. This should enable faster support of a growing ecosystem, while also limiting chain restarts that are disruptive to existing IBC connections.
Prop25 had 72.41% of staked ATOM participate (130.64M ATOM), with 99.99% voting 'yes.'
88 delegators voted with 9,008,941.55 ATOM
66 validators voted with 130,478,253.00 ATOM
They don't add up because much of the voting power overlaps--delegators have the ability to override their validator(s)' vote. This is important to do for a number of reasons.
The votes of delegations to validators #fuckgoogle and Bit Cat? did not count because these validators were not in the active set at the time that the voting period ended. Your votes will only count if you have delegated to an active validator. Several other addresses voted with nothing delegated.
Prop26 is currently in the voting period with seven days remaining. You can see the ongoing discussion about the proposal here.
70 addresses have voted, 62 of those are delegator addresses. As we have seen with Prop25, there are many more delegator votes than ever before. However, validator participation is noticeably absent from this proposal.
Only 3% of the Cosmos Hub has weighed in on Prop26, and though the vote is overwhelmingly in favour, the proposal will fail and the 512 ATOM deposit will be burned if quorum (40%) is not met within seven days.
There are a number of ways to vote, even if you don't have a Ledger wallet. These are the four software wallets that I know of:
- Keplr (web/Android/iOS)
- Cosmostation (web/Android/iOS)
- Rainbow Wallet (Android/iOS)
- Syncnode (iOS)
However, if your ATOMs are on an exchange, you will not have voting rights because the exchange controls these funds until you gain custody.
Voting power amongst validators hasn’t changed much.
What’s the importance of validator voting power?
Validators can work together to form a cartel to make changes to the Cosmos Hub. As of May 21, 2020:
Hopefully you found this useful. Questions? Comments? Feedback is always welcome! I’m on Twitter