1. Status Quo of Cosmos Hub Growth
Distinguishing “Cosmos Network” and “Cosmos Hub”
- “Cosmos Network” : Groups of networks and its ecosystems related to Cosmos-SDK and IBC.
- “Cosmos Hub” : The blockchain network operated by Atom dPoS.
- Although the Cosmos Hub benefits from the growth of Cosmos Network, it should possess its strong functionalities within the context of Cosmos Network to survive and succeed.
- Therefore, there exists two kinds of activities and contributions around Cosmos
- Growing Cosmos Network
- Support great functionalities for Cosmos Hub users
- Atom value is related to both, but it is more directly related to the later
Lack of “Exclusive Force” only for the Cosmos Hub
- There exists very weak plans and investments purely for the Cosmos Hub.
- IBC, Cosmos-SDK framework are good for the entire Cosmos Network, but it is less related to the success of the Cosmos Hub.
- AiB and ICF are more focused on growing Cosmos Network as a whole, but relatively less investment is executed exclusively for the Cosmos Hub.
- The core functionality and vision of the Cosmos Hub is vague, and no one is leading at accomplishing the vision.
It’s not going to be solved without progressive restructuring
- AiB does not have enough bandwidth nor detailed plans to solely carry the vision of the Cosmos Hub because they also need to spend a lot of resources also for entire Cosmos Network.
- ICF is a passive foundation who supports more wide variety of projects around Cosmos Network, hence less focused on the Cosmos Hub itself.
- Many talents in Cosmos community are moving on with their own projects, or distracted by so many networks they are covering. This is mostly because they do not have enough strong incentives to keep contributing for the Cosmos Hub.
- With this status, it is reasonable to expect that the competitiveness of the Cosmos Hub will continuously become weaker as time goes by.
- A lot of projects including Polkadot, Binance Chain, Terra, and so many more are threatening the symbolic reputation of the Cosmos Hub, which becomes the most critical risk at current timing when IBC will be enabled soon.
Incentives of Atom holders
- Even if IBC and Cosmos-SDK are successfully growing with larger community, without attractive utilities provided by the Cosmos Hub, the Hub will lose its symbolic position.
- The Cosmos Hub should possess irreplaceable core applications and utilities for IBC so that it can attract a large userbase from different blockchains.
- Failure to become the center of Interchain Network will result in less utility of Atom, therefore less value of Atom.
- Therefore, Atom holders have very natural incentive to support sustainable Cosmos Hub Special Force who exclusively only works for the success of the Cosmos Hub.
2. Why Grants Cannot Grow Sustainable Contributors?
Temporary grants only covers costs
- Startups need growth factor to sustain its business.
- Teams cannot be sustainably operated with temporary grants which barely cover the costs of their works.
- Better teams with quality talents have more reasons to stay away from contribution with temporary grants.
- Grants from instituition such as AiB or ICF makes the team having less freedom to decide the direction of their projects.
- Contributors have no strong economic incentives to make their works as great as possible because there exists no growth exposure of their works but just paid with fixed money.
Community Fund will only work for Non-Core works
- Community Fund can quite work well with relatively less important works.
- But for core functionalities of the Cosmos Hub, it demands extensive investment of quality human resources with capabilities including designing models, backend development, frontend/UI designing and building business strategies.
- Also the core functionalities need to be operated, maintained and improved over time, which means that the contributor should have strong responsibility of their work for very long time.
- There exists no system or methodology in Community Fund to support and incentivize such sustainable contribution from great team composed of all around talents.
3. Special Forces Committee
- Special Force Committee is elected from all around the community including AiB, ICF, validators and VCs, to work on important analysis and governance proposals.
- Size of the committee is 8 persons
- 1 from AiB and 1 from ICF : each having 20% voting power
- 2 from Validators, 2 from VCs, 2 from Individual Community Member : each having 10% voting power
- Any agenda is pass if more than 2/3 of committee voting power agrees on it
- Any two committee members should not belong to same organization
- For validator/vc/community member, candidates can submit a governance proposal for election, and the one with two largest yes votes from each category acquire the seats during election period.
4. Necessary Conditions for Special Force Recruitment
Teams having the core mission as increasing the utility of Cosmos Hub
- No teams with their own blockchain projects
- No teams with part-timers
- No teams working on projects in different networks
- Teams who can invest their entire energy only for Cosmos Hub growth
Teams with capabilities to perform entire cycle of the utility
- Teams with willingness and capabilities to build from scratch to end-user services
- No teams who only contribute part of an utility, such as PoC only
- This can be supported by temporary grants from AiB, ICF or Community Fund
- Teams with strong commitment to operate, maintain and improve the utility in very long term
5. How to Recruit and Incentivize Special Forces
New Forces, continuation/termination of contracts
- New forces can be recruited anytime when the Special Force Committee submits the governance proposal.
- Continuation or termination of contract for existing Special Forces is evaluated and voted every year. Committee can propose a governance proposal to fix or terminate the contract of each force.
Future incentivization correlated to the price of Atom
- Future price of Atom will be strongly correlated with the success of each project performed by Special Forces.
- It is reasonable to provide the Special Forces increased amount of Atoms for significant price increase.
- This can be in a form of multiple “Call Option” on Atoms with different strike prices and maturity.
- Such “Call Option” should have enoughly long maturity so that each Special Force becomes more sustainable contributor with longer commitment.
Future incentivization calculated from quantitative scoring
- The Committee and each Special Force can come up with quantitative scoring methodologies for more objective future performance evaluation.
- The contract can include variable future incentivization from realized quantitative figures.
More incentivization for longer committed special forces
- We should advise Special Forces to commit their 100% resources for longer time because sustainability of each project for the Cosmos Hub is crucial.
- Therefore, we need to design the incentivization structure to increase the rewards over time so that Special Forces have more strong reason to continuously promise further contribution.