Tag: liquid staking module

Cosmos Hub Introduces New Liquid Staking Module and Dashboard Features

Cosmos (ATOM) Hub, an integral blockchain within the Cosmos Network, announced the successful completion of its v12 upgrade. The update introduces the Liquid Staking Module (LSM) that allows ATOM token holders to bypass the previously mandated 21-day unbonding period for unstaking their assets.

As per the official announcement on 13th September at 9:30 pm, the new LSM facilitates users to “directly liquid-stake their already staked #ATOM without waiting for the unbonding period.” This innovation aims to enhance the dynamics of the ATOM Economic Zone by enabling the staked ATOM to integrate seamlessly into the Cosmos decentralized finance (DeFi) ecosystem without undermining the staking returns. 

However, it’s essential to note that there are governance measures in place to ensure the security of this feature. Cosmos Hub tweeted a reminder emphasizing an initial limit where “the total amount of ATOM that can be liquid-staked is set at 25% of all staked ATOM.” This cap is flexible and subject to future changes through governance processes. In addition to this, for heightened security, the LSM requires validators keen on receiving delegations from liquid staking providers to self-bond a specific quantum of ATOM.

On another note, just 8 weeks following their initial launch, the team at NumiaData unveiled an enhanced dashboard for Cosmos Hub. This updated version, termed as “Data Lenses v2,” was spotlighted on 14th September at 2:50 am. It showcases an array of features including monitoring “On-chain Transaction Flows,” “Liquid Staked ATOM,” and “AEZ APR & Revenue Flow.” The dashboard, which can be accessed at http://datalenses.zone/chain/cosmos, is a product of user feedback and is designed to provide better user experience with improved UI/UX elements.

The shift from a 21-day unbonding period was notable as ATOM, the native token of the Cosmos network, required its holders to undergo a locking period of three weeks to transfer their funds post-unstaking. The recent v12 upgrade, named “Gaia 12,” became operational at 1:00 pm UTC on 12th September, recorded at block height 16985500. 

This development is a testament to the evolving blockchain space and how the integration of user feedback can result in advancements that streamline processes while safeguarding user interests.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

Cosmos Hub Votes to Reduce ATOM Inflation Rate to 10%

Recently, the governing body of the Cosmos Hub approved a significant change to the blockchain’s economic model. The community voted to reduce the maximum inflation rate of ATOM, the native token of Cosmos Hub, from its current rate of around 14% to a new cap of 10%. This change is expected to reduce the Staking Annual Percentage Rate (APR) from approximately 19% to about 13.4%.

ATOM plays a central role in the Cosmos Hub ecosystem, being used for staking, governance, and transaction fees. The proposal to adjust the inflation rate garnered mixed reactions, with 41.1% of participants voting in favor and 38.5% voting against. The decision was on a knife-edge until the final moments of the voting period, when a late surge of votes and some reversals from validators tipped the balance in favor of the proposal.

Proponents of the change argued that the existing higher inflation rate led to the Cosmos Hub overspending on network security. The proposal also suggested that validators would still be able to reach a break-even point or remain profitable even with the reduced inflation rate. Zero Knowledge Validator, a prominent validator in the Cosmos ecosystem, voiced its support for the proposal on X (formerly known as Twitter), explaining its stance in favor of the adjustment.

On the other hand, the proposal faced significant opposition, notably from AllNodes, another key validator. AllNodes expressed its concerns on X, describing the proposal as “an abrupt, short-sighted, and ill-researched idea.” They warned that the reduced inflation could negatively impact small validators, as well as retail participants and businesses involved in building, trading, and validating ATOM.

In a related development, Cosmos Hub recently implemented a liquid staking module, a significant update that allows for greater flexibility in the use of staked ATOM. This module enables users to bypass the previous 21-day unbonding period, allowing staked ATOM to be utilized within the Cosmos decentralized finance (DeFi) ecosystem without compromising the returns from staking. This innovation is seen as a step forward in enhancing the liquidity and utility of staked assets in the Cosmos network.

This decision to adjust the inflation rate marks a pivotal moment for the Cosmos Hub, reflecting the community’s ongoing efforts to balance economic incentives with network security and validator profitability. As the Cosmos ecosystem continues to evolve, these changes highlight the dynamic and participatory nature of blockchain governance.

Exit mobile version