I believe the proposed conversion rate undervalues Osmosis and should be reconsidered. A rate closer to 1.06 ATOM per OSMO would better reflect the real value Osmosis brings to the Cosmos ecosystem.
For years, Osmosis has been the primary liquidity hub for Cosmos assets. It is where most trading activity, liquidity, and price discovery in the ecosystem actually happen. Most importantly, Osmosis generates real revenue through trading fees, while the Cosmos Hub itself primarily operates as infrastructure that requires continuous funding and maintenance. In other words, Osmosis is one of the few parts of the ecosystem producing economic value, while the Hub mainly represents costs.
At the same time, the proposed conversion rate is based on a 30-day TWAP calculated during a deep bear market, when activity across DeFi is significantly depressed. Historically, DeFi infrastructure tends to be heavily undervalued during bear markets, especially when trading volumes and liquidity are low. Valuing a core liquidity engine of the ecosystem at this point in the cycle likely understates its long-term importance.
By integrating Osmosis into the Hub, ATOM would gain an already functioning DeFi engine with established liquidity, routing, and fee generation. This is not simply a technical merge - it is effectively transferring the ecosystem’s primary revenue-generating trading infrastructure into the Cosmos Hub.
For these reasons, a conversion rate closer to 1.06 ATOM per OSMO would better reflect both the economic contribution of Osmosis and its strategic importance to the future of the Cosmos ecosystem.