Exploring Sustainable Funding for the Cosmos Hub: How Fees and Licenses Can Monetize the Cosmos Stack

Hello Cosmos community,

It seems timely to open a discussion about the funding of the Cosmos SDK tech stack and the potential return on investment for the Cosmos Hub.

Historically, the Cosmos Hub has always been the blockchain that finances the development of the Cosmos stack (Cosmos SDK, Tendermint, IBC, etc.).
However, there has been no direct return on this investment, as the technology is open-source and no licensing mechanism has been put in place.

I’d like to engage the ATOM community in a discussion on how to remunerate the Cosmos Hub through mechanisms such as fees for technical projects connecting to the Hub, licenses, or usage fees for Cosmos Hub’s stack.

Here are some ideas for potential models:

Fees from chains using the Cosmos stack but not connecting directly to the Hub:

Even if chains decide not to connect directly to the Cosmos Hub, they could still contribute financially through minimal fees, as they still benefit from the larger Cosmos tech stack (Cosmos SDK, Tendermint, etc.). While this may seem challenging in an open-source environment, a possible approach is to convince projects that paying small fees helps maintain and improve the very tools they rely on, which ensures long-term stability, support, and ongoing innovation. This collective contribution could be positioned as a way to sustain the health of the ecosystem for the benefit of all.

Licenses for using the Cosmos stack:

We could introduce licenses for projects leveraging tools like the Cosmos SDK or Tendermint. These licenses could be scaled based on the size of the projects or their level of funding. For example, startups could benefit from free or reduced-cost licenses, while more established enterprises could pay a higher fee.

Usage fees for the technical stack:

Another model would involve charging usage fees based on the volume of technical activities or transactions processed via Cosmos SDK-based tools. The Cosmos Hub could collect a small commission on each transaction or interaction using its infrastructure.

The goal of these proposals is to strike a balance between preserving the open-source nature of Cosmos, a core principle, and creating sustainable funding sources to support ongoing innovation and the future growth of the Hub and the wider ecosystem.

Open questions to the community:

Do you think the introduction of fees or licenses would hinder the adoption of the Cosmos stack, or would it encourage more sustainable and responsible development?

What types of fees/licenses would be the most fair and effective to maximize adoption while generating revenue for the Cosmos Hub?

How can we ensure transparency and fair redistribution of the funds generated through these mechanisms?

Your thoughts and feedback are crucial to move this idea forward and define the best strategy for the future of the Cosmos Hub.

Thank you all!

2 Likes

In general, i think serious startup projects would be willing to use atom as the sole fee token for running their product, knowing they will benefit from the provided infrastructure and security set.
But i don’t think that revenue generated only from transaction fees would add significant demand on the atom token alone. I’m still looking forward to the Hydro Platform, in my point of view the very first concept to bootstrap a project without off-chain token pre-distribution (aka ICO), which could take atom among the best launchpad platforms within the whole crypto space.
Using atom as fee token should be a no-brainer for projects, that identify themselves with the cosmos network