Agoric Cosmos Hub Proposal

On behalf of the PRO Delegators’ validator team, we want to draw everyone’s attention to the current discussions within the hub regarding the future implementation of a Protocol Own Liquidity (PoL) system, commonly referred to as “ATOM Wars”. If you’re not already familiar with it, we strongly encourage you to read the following post for a thorough overview:

This proposition aims to allocate ATOMs from the community pool through liquid staking to mint some IST stablecoin, in order to improve DEX liquidity for the latter. Our stance on this matter is as follows: regarding community funds expenditure related to liquidity, we advocate for processing these exclusively via the ATOM Wars. This approach will ensure the most efficient allocation of funds through a bidding and voting system.

Of course this new PoL system is still under construction at the present time and therefore we will support this proposal during the interim period only. Once the ATOM Wars protocol is deployed, we will endorse a gradual clawback of all previously deployed community funds, inviting beneficiaries to migrate to this new system if they wish to renew their allocation. Therefore, we advise proposers to consider this, noting that the proposed 365-day allocation may fall short if the PoL system is deployed before that date. We envision a scenario where the sole method to claim community funds for liquidity allocations will be through this system, ensuring fair distribution among bidders.

To summarize, we will vote YES to this proposition but we will also support an preemptive claw-back once the ATOM Wars goes live, inviting Agoric to position themselves among the bidders to renew this allocation.

Thank you for your attention.