Going to skip signaling it. Put it to a vote and see what the will of the people is.
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I’m not expressing any opinions on whether to reduce the CP tax or what a prudent use of the community pool is. Just wanted to hop in here to say that Stride separates out its community treasury into completely separate module accounts based on purpose:
- Community growth
- Security
- Incentives
Each can be accessed with different proposal types. This has helped a ton with budgeting and ensuring that spends remain relevant and targeted. The Hub could feasibly do the same with a liquidity and grants bucket, and allocate whatever proportion of the pool it feels prudent to each.
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Thank you for raising this concern Paul.
To clarify, the Community Pool (CP) does not hold $84 million but instead contains approximately $200,000 in liquid assets, alongside 7.6 million ATOM and NTRN tokens. This represents around 1.9% of the circulating supply of ~390 million ATOM. At Govmos, we believe this share is insufficient for a network at its current stage of maturity, falling short of the industry standards.
We propose targeting a CP size of 5% of the circulating supply and implementing the following allocation structure to ensure both effective use and sustainability:
- 25% for Public Liquidity Allocations via Hydro
This ensures liquidity is strategically distributed to support the ecosystem’s stability and growth. - 50% for a Community Staking Delegation Program
This would fund top-performing validators while generating staking rewards to maintain the CP’s relative share of the supply over time, avoiding slow dilution. - 25% for Hub-specific Grants
Governed by the community and managed by a skilled grant review committee, this portion would fund initiatives with direct benefits for the Cosmos Hub.
This model is designed to make the CP self-sufficient, using staking rewards and Hydro profits to sustain grant funding without requiring further external contributions through the CP tax. With that framework, we could imagine turning it down to 1% and then eventually down to 0% once the stability has been proven through the test of time.
We plan to publish a comprehensive proposal regarding the CP allocation strategy early next year, with detailed arguments and data to support our thesis around this 25/50/25 allocation prospect. In the meantime, we welcome any preliminary feedback on this approach and look forward to engaging with the community to refine these ideas further.
Thank you for your attention,
Govmos
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Hello @Govmos ; any updates on the several comprehensive proposals and debate posts planed for early 2025 ?
Due to recent policy shifts within the Cosmos ecosystem, we have decided to postpone these initiatives. However, we remain certain that their time will come in the future. The ideas and efforts we previously shared are still in the pipeline, but we believe the current timing is not optimal.
In the meantime, we will redirect our efforts toward other forms of contribution. Our commitment to supporting this ecosystem remains unwavering, and while governance has been one of the many ways we engaged, it is far from the only one.
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Community pool tax should be 0%. Cosmos Hub doesn’t need to finance anybody. The community pool is a den of vipers and thieves and while it sounded like a good idea 5 years ago, it is clear now it hasn’t lived up to its original purpose. There doesn’t need to be any reform. It needs to be shut down.
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It is pleasant to see that we have the same pov regarding something.
Going to wrap this thread up and throw support behind this: https://forum.cosmos.network/t/proposal-draft-reverse-proposal-88-revert-community-pool-tax-rate-to-2/