Opt-in security used to be called ICS v2 and Mesh security ICS v3. With ICS v2 consumer chains can launch with one permisionless transaction rather than going through the governance voting process. This means that many consumer chains may launch with ICS v2/Opt-in Security but then validators will perform in-depth due diligence and only opt-in for those consumer chains promising or only providing higher rewards than the costs to run that consumer chain nodes, hence leading to consumer chain competition and only the best consumer chains will get most of the high security from the Cosmos hub. With Replicated security, the competition is very low, meaning that any serious project putting a governance proposal to become a consumer chain will likely be approved to enhance the narrative of the ATOM economic zone even if no rewards are provided to validators and only costs. The biggest issue with Replicated security is that all validators have to run consumer chain nodes, even at an increasing loss as is currently the case with new consumer chains joining. We have to say a big thank you to @jtremback for introducing the soft opt-out option for the bottom 5% of validators, otherwise after Stride and Duality many of these validators would likely be forced to stop operations in the Cosmos Hub. Moreover, since for those above the 5% voting power not running consumer chain nodes there is only jailing but no downtime slashing, and double sign slashing goes through a governance process, we can see several validators above the 5% bottom voting power not running Neutron nodes and constantly unjailing after they are jailed. This means that even above the bottom 5% voting power, there is demand for the soft opt-out and since not available they are using other strategies to not run consumer chain nodes.
I think if with Fraud votes ICS v2/v3 can be implemented in Cosmos before Fraud proofs are ready, and hence going ahead of Ethereum and other projects, this seems like a great idea.
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