Thank you for raising this concern Paul.
To clarify, the Community Pool (CP) does not hold $84 million but instead contains approximately $200,000 in liquid assets, alongside 7.6 million ATOM and NTRN tokens. This represents around 1.9% of the circulating supply of ~390 million ATOM. At Govmos, we believe this share is insufficient for a network at its current stage of maturity, falling short of the industry standards.
We propose targeting a CP size of 5% of the circulating supply and implementing the following allocation structure to ensure both effective use and sustainability:
- 25% for Public Liquidity Allocations via Hydro
This ensures liquidity is strategically distributed to support the ecosystem’s stability and growth. - 50% for a Community Staking Delegation Program
This would fund top-performing validators while generating staking rewards to maintain the CP’s relative share of the supply over time, avoiding slow dilution. - 25% for Hub-specific Grants
Governed by the community and managed by a skilled grant review committee, this portion would fund initiatives with direct benefits for the Cosmos Hub.
This model is designed to make the CP self-sufficient, using staking rewards and Hydro profits to sustain grant funding without requiring further external contributions through the CP tax. With that framework, we could imagine turning it down to 1% and then eventually down to 0% once the stability has been proven through the test of time.
We plan to publish a comprehensive proposal regarding the CP allocation strategy early next year, with detailed arguments and data to support our thesis around this 25/50/25 allocation prospect. In the meantime, we welcome any preliminary feedback on this approach and look forward to engaging with the community to refine these ideas further.
Thank you for your attention,
Govmos
