Gravity is the bridge between EVM chains like Ethereum and Cosmos SDK-based blockchains. Gravity enables token transfers from Ethereum to the Cosmos Hub and back by blocking tokens on the Ethereum side, while tokens of equal value are minted on the Cosmos side.
Governance proposal No. 48 on Cosmos Blockchain: “New Cosmoshub proposal to increase the inflation rate change variable so that the network can better protect itself from childbirth and react more quickly if the ATOM loyalty ratio falls below the 66% target in the voting period.”
What is the Proposal to Correct Inflation Rate Change Per Cosmos Big Dipper?
The purpose of changing the network’s inflation rate is to protect it from delivery shocks that threaten to compromise the security of the network. If the bonded ratio falls below the targeted bonded ratio (currently at 66% on the hub), the rate of inflation and the effective rate of return on the staked atoms increase to give the holders an incentive to bind new ATOMs, which gives the network additional security .
Conversely, if we get back a desired amount of tokens used, the yield decreases, which reduces the effective income for all delegators. Ideally, the inflation rate begins to change quickly, which optimizes network security through monetary hardship. To find out what would be a suitable choice for the Kosmos hub, I created Excel sheets to run through all the different scenarios to find out which value makes the inflation rate react optimally.
I concluded that 1 (AKA 100% per year is the maximum slope of the inflation curve) gave the most ideal properties, with the added benefit of simplifying the equation. I’ll give some examples of how it would react. Since we’re protecting ourselves from the redemption, I’ll be looking at flash unbonds while the inflation rate is at the bottom, as this is the number 1 time of vulnerability.
DeFi is also coming to ATOM in the next few weeks. And this opens up new possibilities for using ATOM in Gravity Dex and Osmosis.
In order for everything to be a success, the community wants more votes for Proposal 48. And all of this to ensure that staking at the Cosmos Hub remains adaptable.
Because Cosmos is environmentally friendly, it offers the ability to automatically offset emissions at the validation and even log level using Regen Network’s CO2 compensation log. You are very aware of the importance of a greener environment in promoting innovative technologies. You will focus on establishing sustainable solutions such as Cosmos Proof of Stake, blockchain interoperability and carbon offsetting.