We would like to share our perspective regarding the introduction of the token factory on the Cosmos Hub. While we recognize the importance of experimentation during the current interim phase, we also believe it is essential to remain aligned with the blockchain trilemma and maintain a sustainable balance between security, decentralization, and scalability.
Key Considerations:
- Scalability Risks: The token factory has a direct impact on scalability. Our primary concern is to prevent abuse and spam, which could undermine the Hub’s stability. Proper monitoring and safeguards should be in place.
- Acceptable Boundaries: We are open to supporting broader use of the token factory so long as activity remains within reasonable limits and does not compromise network performance on other activities (CW, etc..).
- Ecosystem Opportunity: Token issuance on the Hub carries unique benefits, notably stronger security, decentralization, and credible neutrality compared to smaller chains. While allowing endless composability of usage anywhere in the broader ecosystem thanks to IBC.
Recommendations:
- Risk Mitigation: At present we believe the variable fee mechanism should be a sufficient first line of defence against abuses. We remain open to explore complementary measures if needed (specific gas limit per bloc for the token factory as an example).
- Strategic Positioning: Encourage the Interchain Lab (ICL) to design and implement a marketing campaign highlighting why minting tokens on the Hub is preferable:
- Seamless cross-chain portability via IBC, ensuring broad accessibility.
- Enhanced security and neutrality, making the Hub the most reliable issuance venue.
- Reinforced ecosystem trust, as Hub-tokenized assets carry stronger reputational weight.
Conclusion:
We are supportive of further exploring the token factory on the Hub, conditional on effective safeguards for scalability and abuse prevention. At the same time, we see this as an opportunity to reaffirm the Hub’s role as the most secure, neutral, and interoperable chain within Cosmos, and to actively promote this positioning to developers and users.
Thank you for reading,
Govmos.
