For those delegating since the Cosmos launch, and who use a Ledger, there is the frustrating reality that their Atoms live on a separate HD wallet from the rest of their crypto.
Many of us who use a Ledger have for years, and hold several cryptocurrencies and tokens across several HD accounts derived from one seed. Having everything under one HD wallet is great and makes managing assets easier (that’s sort of the point of HD wallets). This will be even more relevant in the future when we regularly participate in governance, possibly across several networks.
As it stands, one either needs a) two Ledger devices for their historical seed and their Cosmos funding seed, or b) to frequently restore their device with one seed or the other.
Of course, one could move assets from their historical seed to the funding seed. But those with years of usage and transaction history will find this very cumbersome.
- They may have several tokens spread across different accounts and addresses.
- They may reuse addresses derived from their historical seed to receive funds.
- They will have transaction histories in two places, which may add complexity when paying taxes.
- They will incur some transaction fees to move the funds.
Moving Atoms from the Cosmos funding seed to the historical seed carries a cost as one would need to unbond, effectively loosing 21 days of rewards. Depending on one’s stake, this could represent a lot of money. But even with a modest stake, the potential future losses could be significant if the price of Atoms increases substantially. For example, a reward of 100 Atoms over 21 days would translate to a loss of about $600 today. If the price of Atoms one day reaches $100, that’s a potential future loss of $100,000.
My proposal introduces a special transaction type which would allow Cosmos funders to reassign ownership to a new address derived from their historical Ledger seed. The new transaction type would work as follows:
- Reassign ownership of all the Atoms in an original funding address to a new specified address derived from the historical seed. The originating address would need to be in the genesis block for the transaction to be valid.
- The transaction would not affect bonding. Atoms would remain bonded with the same validators and in equal proportions, simply transferred to a new address.
- Any further transactions would require the user to unbond normally.
As someone who participated in the funding and who is delegating since the network launch, I would like to see an easy and painless way to do this otherwise simple wallet ‘housekeeping’ task.
I would love to hear what others think of this and if it’s something more people also wish they could do. I’m also not necessarily conscious of the technical feasibility and complexity of such a change. For example, I can see different ways in which this new transaction type could be architected.
- Perform a special ‘no unbonding period’ unbonding, transfer the assets, and immediately redelagate.
- Tokens never get unbonded, their ownership just gets ‘magically’ reassigned to the new address if the conditions are met.
I’m looking forward to the community’s feedback on this.