- 2023-06-02 Created initial post
- 2023-06-14 Revised for on-chain proposal references, see #801
This signaling proposal has been drafted to solicit community approval for the removal of the Gravity Dex liquidity module from the CosmosHub and to return the funds contained therein to the rightful owners.
It is important to remove the liquidity module because it will greatly reduce development overhead, increase speed and efficiency, and reduce risks, in addition alternative modules that will be actively maintained are being developed.
The liquidity module was introduced in proposal #51, but has been migrated to the Crescent chain after proposal #62. Currently only pool withdrawals are enabled, with module swaps and deposits blocked with proposal #67. Despite withdrawals being enabled for over a year, the liquidity pools still contain unclaimed funds that need to be redistributed.
The module is not actively maintained and has no utility on the Hub. A failure to remove it will drastically decrease the speed at which the Cosmos Hub can be upgraded, and result in increased overhead to perform such upgrades.
Due to its lack of utility and the costs of keeping it on the Hub, the module should be removed and the funds held therein should be returned to their owners.
Currently, the Liquidity module contains around ~$150,000 worth of un-withdrawn tokens. The developers of the Liquidity module have kindly prepared code to facilitate the removal of this module and get any remaining funds back to their rightful owners. Here is how this will happen:
- During the next planned Hub upgrade, a migration script will run which will return ~99% of the unwithdrawn tokens directly back to their owners.
- ~1% of tokens (worth ~$1000) will remain which cannot be attributed to an owner.
- This remaining ~1% will be transferred to the community pool. If in the future, the rightful owners come forward with evidence of their ownership, these tokens can be returned to them by governance proposal.
The following items summarize the voting options and what they mean for this proposal:
Upon a YES vote:
- Development will continue on the removal of the Gravity DEX liquidity module and upon completion will be integrated into Gaia and rolled out in the next major release
- Upon a Gaia rollout with this feature, all remaining funds will be sent back to originating accounts. Funds that are not owned by anyone (accrued tx fess, or other protocol-owned funds) will be sent to the community pool.
- In a subsequent Gaia release, the module will removed completely
Upon a NO vote:
Development will be on-hold and discussions with the community will continue to find the best path forward to remove the liquidity module and address the funds contained therein.
NO WITH VETO - A ‘NoWithVeto’ vote indicates a proposal either (1) is deemed to be spam, i.e., irrelevant to Cosmos Hub, (2) disproportionately infringes on minority interests, or (3) violates or encourages violation of the rules of engagement as currently set out by Cosmos Hub governance. If the number of ‘NoWithVeto’ votes is greater than a third of total votes, the proposal is rejected and the deposits are burned
ABSTAIN - You wish to contribute to quorum but you formally decline to vote either for or against the proposal
- #38 Signal Proposal to Adopt the Liquidity Module onto the Cosmos Hub
- #45 Community Fund Governance Proposal For Gravity DEX Incentivized Testnet Prize Pool
- #49 Signaling Proposal - Deployment of Gravity Bridge on the Cosmos Hub
- #51 Governance Proposal for Gravity DEX Adoption to the Cosmos Hub
- #62 Signal Proposal: Migration of Gravity DEX to a Separate Cosmos Chain
- #67 Parameter change: Enable liquidity module circuit breaker