What if instead of the Hub owning this POL, the Osmosis community pool owned it?
Now hold on Hub gov don’t start throwing things. Hear me out.
In exchange for this, what if the Hub community pool owned the OSMO POL from Osmosis Proposal 641. IMO these joint proposals are ripe for a treasury swap.
One of the primary concerns with Prop 641, which may cause it to be repealed otherwise, is that OSMO holders don’t really get a ton of value from provisioning this liquidity. Swapping it for this ATOM POL would give the Osmosis treasury a yield-bearing liquidity position that would significantly diversify the assets in that treasury, reducing insolvency risk for the protocol.
Similarly, I imagine that ATOM holders might have the same argument: “what’s in it for us?” With this swap, ATOM holders get closer alignment with Osmosis as well as a yield-bearing OSMO POL position. This also significantly benefits Stride, who is a consumer chain of the Hub’s security (which means more revenues for the Hub).
Meanwhile, this liquidity lives on Osmosis, which naturally benefits Osmosis further as well. It’s a huge win all-around.
The two positions are roughly equivalent in value, and any imbalance between them could be made up for with an increase in size of one or decrease in the other.
Obviously, I’m just brainstorming here, and this would need to go back through Osmosis governance first, but it looks like things are headed in that direction anyway. This might be a good opportunity to provide additional value not originally anticipated as part of prop 641 and foster better alignment between the Hub and Osmosis (which is sorely needed by both chains imo).