After taking an initial poll on TG regarding a large scale funding program to onboard developers to build on cosmos, it seems evident that a a fair bit of the community is interested in increasing the visibility and adoption of atom and IBC.
IBC has been a big success and we are seeing the benefits of it already as new projects are on boarding. Even though the IBC tech is probably the most superior interoperable tech in crypto today, it is really unfortunate that it remains fairly unknown and under the radar from a adoption and visibility perspective.
The Cosmos ecosystem is at an inflection point and a large scale funding program deployed aggressively to onboard new developers to build on cosmos and IBC will bring new projects to the ecosystem which in turn will bring new users and more TVL for the platform.
My idea is to launch a large $75 to $100 million funding program to make a much needed impact in increasing development, adoption and visibility. The ultimate goal of such a funding program will be to increase the value accrual of $ATOM within the cosmos/IBC ecosystem, hence would be funded by the atom community.
The initial structure which would make sense to the atom holders are as follows. The below criteria need to be aligned in a way to maximize the value accrual of the cosmos hub and atom holder. One or more of the below criteria should be met and incorporated if a new project were to be funded by such a program.
- funded projects would use cosmos hub shared security and IBC router
- funded projects would make atom as the base ccy of their project
- funded projects would airdrop to atom stakers
The above requirements for a potential project can be fine tuned with further brainstorming.
The scale of the program would require about 2.25 million $ATOM based on today’s price. This is only about 0.78% of the circulating supply.
In order to fund such a large program, I would propose the following.
- increase the inflation of $ATOM one time by about 1% to fund such a program
- use some portion of the current inflation to fund the program which will impact the staking rewards/apr slightly.
Either 1 or 2 will work effectively as an announcement of such a large program will bring a ton of visibility to $atom. This should in turn increase the market cap of $atom substantially and the 1% of proposed dilution as in point 1) would be inconsequential.
If we take the route 2) then there will not be any additive dilution at all but the final impact on market cap would still be similar as above, which in my opinion could be anywhere between 30-50% increase in $ATOM market cap right away.
In order to increase accountability of such a funding program I would like to propose creating a team of 6 members which would be a combination of members from the tendermint team, developers, validators and community member.
The funds of the program will be held by a multi sig wallet.
Funding team members would be incentivized from the developers fund to reward them for their contribution.
Process of Deployment of Funds.
Projects and developers would approach the Funding team with their proposal to develop on cosmos with the criteria as mentioned above.
The Funding Team would analyze the projects on various criteria and filter the project which would have the highest impact on the value accrual of atom as well as the overall cosmos/IBC ecosystem. Focus would also be on diversifying the type of projects and filtering projects by sectors ( defi, nft, metaverse, gaming, privacy etc). The team would also work with potential projects to align incentives and negotiate funding needs.
Once the projects are filtered at the top, the proposal of the project would be put forward to a vote by the atom community. If the atom community vote succeeds then the funds can be deployed to the potential project.
Such deployment will take place in stages based on the progress achieved by the projects and will be constantly monitored by the funding team.
The time line for such a funding program should ideally be between 12 months to 24 months to give enough time to onboard new projects which have the potential to succeed and make the cosmos ecosystem even bigger and at the same time increase the value accrual for $atom holders.
This kind of a program which focuses on bringing in more talent and developers onto the cosmos ecosystem will solidify the position of the cosmos hub within the cosmos and IBC ecosystem and will future proof the value prop of $ATOM token.
I would appeal to all the validators and delegator to please consider the above idea and have a constructive discussion about it so that we can lay out a proposal for the atom community to vote.
It is critical that atom community agressively try and brand ourselves as the leader of IBC and increase the value accrual of $ATOM as IBC adoption and cosmos eco system grows.