Proposal for enabling issuance of fungible tokens on the Cosmos Hub

#1

Validator.network plans to submit the following proposal for a governance vote soon, unless feedback from the community leads us to do major revisions of the text.

In short, the proposal is to allow issuance of custom tokens on the Cosmos Hub. New tokens can be introduced through the governance process.

Please visit the proposal at https://github.com/validator-network/cosmoshub-proposals/blob/master/issuance-proposal.md and add your comments below or directly to us through Telegram (@mdyring and @haasted).

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#2

Questions

  • Are we only going to fixed supply tokens? or some kind of inflationary token also in scope?

  • Are names first come/ first served?

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#3

One idea here is just specify a multisig account that issue more supply.

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#4

Thanks for feedback Zaki.

We’ve added sections on supply (unrestricted) as we see fixed supply as a subset problem, detailed in “not in scope”.

Also added section on token identifiers as “not in scope”, as we expect the subsequent governance proposals for token listings to handle this.

Also added multisig as suggestion (not requirement), but it is sensible to do with multisig :slight_smile:

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#5

As there have been a bit of communication outside of this forum, we believe most suggestions have been incorporated and concerns addressed.

Current ETA to submit the proposal is Monday, April 15th.

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#6

Some additional points of view:

This is effectively a form of permissioned token issuance. Permissionlessness was always intended to be driven by IBC so I think this is fine.

I would also really prefer if this feature was implemented by some entity other than AiB. At the moment, AiB has no intention to implement but would most likely help with testing, integration and design as we would with an SDK module that was being upstreamed.

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#7

Validator🌐Network just published proposal #4 for enabling issuance of fungible tokens on the Cosmos Hub. We see this as a big step toward providing immediate utility and wider adoption for Cosmos Hub.

Hoping for strong community support - please get in touch with any questions.

https://hubble.figment.network/chains/cosmoshub-1/governance/proposals/4

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#8

My first impression is to put IBC and shared security at a higher priority in order to enable the issuance of fungible tokens. I’m afraid it will diminish the value and importance of IBC if this is enabled before the existence of IBC. The role of the Cosmos Hub is to connect to different hubs and zones. If these tokens can be created on Cosmos Hub now, will this discourage the appearance of other hubs or zones?

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#9

Thanks for your feedback Kwun.

We do not expect the implementation to be a distraction for IBC, as it looks like a non-Tendermint development will undertake the work.

IBC will continue to be a huge part of the value-proposition for Cosmos, giving services the ability to run their custom application logic on top of Tendermint while connecting via IBC. We do not see fungible token issuance as any kind of competition to IBC, but mainly as a way to provide immediate utility with what we have today.

One of the use-cases for fungible token issuance we see is to bootstrap new services for the Cosmos Network. Projects can do a fundraiser and initial distribution using fungible tokens, move on to building out the service/zone and finally connect it to the Hub. So we also see as a convenient way for new projects to join the network.

We’ve recorded an interview with Brian Crain from Chorus One, which explains our reasoning in more detail. Hope to be able to share that soon here.

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#10

We just uploaded the interview: https://youtu.be/Yjl_lH5Cx_U
Thanks for joining Brian for this!

We are working on our own evaluation and will hopefully release our evaluation and vote on this issue at latest beginning of next week.

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#11

Perfect, thanks Felix!

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#12

One of the use-cases for fungible token issuance we see is to bootstrap new services for the Cosmos Network. Projects can do a fundraiser and initial distribution using fungible tokens, move on to building out the service/zone and finally connect it to the Hub. So we also see as a convenient way for new projects to join the network.

That’s a great use-case. If so, I would prefer those tokens have to be locked up once issued until the project is done. Once the project is online, those tokens can be transferred back to the zone via IBC.

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