[PROPOSAL IDEA] Token Factory on Cosmos Hub

Hub Proposals Proposal Ideas
33

Context

Following the discussions on the initial post, it has become clear that the IBC Hooks functionality is not essential for the Cosmos Hub. In fact, the callback functionality is already enabled on the Hub, which addresses much of the original need.

Updated Proposal

Given this, the signaling proposal should be refocused. Instead of requesting the activation of IBC Hooks on the Cosmos Hub, the emphasis should now be placed on implementing a Token Factory. This is the most relevant and impactful feature to strengthen the Hub’s role and interchain interactions.

Why a Token Factory Makes Sense

  1. Complementarity with Existing Features

    • The existing callback functionality already covers the key use cases that were driving the need for IBC Hooks.

    • The Token Factory would therefore complement the Hub’s current toolkit without creating overlap.

  2. Native Token Creation and Management

    • Enables projects and communities to create and manage tokens directly on the Hub, without relying on external solutions or smart contracts.

    • Improves security, transparency, and governance of newly created assets.

  3. Strengthening the Cosmos Hub’s Attractiveness

    • A native Token Factory makes the Hub more competitive and central within the Cosmos ecosystem.

    • Encourages projects to use the Hub as a primary anchor for their interchain tokens.

  4. Interoperability and Simplification

    • Combined with the existing callback functionality, a Token Factory would streamline automation and interchain asset flows.

    • Reduces infrastructure complexity and costs for developers and operators alike.

Conclusion

By focusing solely on the Token Factory, the proposal becomes sharper, more pragmatic, and fully complementary to what is already in place. It addresses actual ecosystem needs while avoiding duplication and maximizing impact on the Cosmos Hub’s development.

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