[PROPOSAL] TerraClassic IBC reactivation via Client Unfreeze

Hub Proposals Client Update
1

Proposer: fragwuerdig
Authors: fragwuerdig / Rex Harrison (Rexyz)

Declarative Biases

fragwuerdig: owns LUNC and staked LUNC. Owns ATOM and staked ATOM
Rexyz: owns LUNC and staked LUNC. Is a senior partner of TerraCVita, operates a
validator (TerraCVita) on the Terra Classic chain and is a trustee of the Terra Classic
Community Foundation.

Summary

Through accepting this proposal it is proposed to unfreeze the expired IBC Tendermint client
07-tendermint-641 which interconnects the Cosmos SDK blockchains cosmoshub-4 and columbus-5 (TerraClassic)

Technical background

IBC is a three-layered network protocol which interconnects blockchains. Applications on the
chain use the high-level IBC channels to interchange information (e.g. transferring funds).
Channels are the blockchain application-end interface to enable access to IBC as a whole.
Channels are built upon IBC connections which control and secure data flow between
chains. Connections in turn are built upon the so-called Tendermint clients, which handle the
consensus states on the both interconnected chains. On each of the both interconnected
chains one client that references the other chain is necessary to make the protocol work.

Current Situation

In order to be trustworthy, the state of these clients needs to be periodically updated by IBC
relay operators. In case the relay operators seize their work, the clients can become expired
and will be frozen. After having been frozen a state update of the client is not possible
anymore. This is exactly what happened, when the Terra Luna price crashed back in May
'22. As a result the communication between both chains was not possible anymore.

Solution

The ibc-go implementation of the IBC protocol in the Cosmoshub blockchain exposes a
type of governance proposal, which enables a community to reactivate an expired/frozen
Tendermint client. When such a proposal passes, then the state of another (but active and
updateable) Tendermint client which is available on both chains gets copied into the expired
client, thus reactivating the expired one. It is to establish this reactivation function that this
governance proposal is about.

Results of Voting

Yes = The canonical Tendermint client 07-tendermint-641, which interconnects columbus-5
(Terra Classic blockchain) and cosmoshub-4 will get updated with the state of another active Tendermint client.

Unfreezing an expired client does not necessarily mean that you can transfer funds or exchange IBC packets between both chains again. The Tendermint client on the columbus-5 chain that references cosmoshub-4 might be frozen as well. However, voting “yes” represents the intend of the community to reactivate the IBC connection.

No = The Tendermint client 07-tendermint-641 remains expired/frozen. This shows the intent
of the community, that it does not want a functioning IBC connection between Terra Classic and Cosmoshub anymore.

Risk and Opportunities

Risks

There are no significant risks to this proposal being accepted.

In the case that this proposal passes and the connection between Terra Classic and
Cosmoshub gets reactivated, there is also no significant risk of diluting the Terra Classic on-
chain overall-supply. The amount of LUNC trapped on Cosmoshub is ~36,100 (as queried
on 23rd October ‘22).

Opportunities

Reactivating the IBC’s across connected chains might have a great marketing effect through
signalling that it shows that the community makes sensible decisions and takes action.

Reactivating IBC’s could release ’trapped’ Atom on TerraClassic, making affected Atom holders whole again.

Reactivating IBC’s brings interoperability meaning that Atom holders are able to generate yield from liquidity pools on TerraClassic.

The proposal is open for discussion.

2 Likes
2

Been waiting for this

2 Likes
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Lunc will need to complete the patch. I’ve provided the complete text of a full gov prop on the lunc side. Then ibc can be opened.

2 Likes
4

Please, add a link to that text. Thank you.

5

Yes let’s run this all the way rebels

1 Like
6

This is actually not led by Terra Rebels…

7

any step ahead on this? I still have Atom and SCRT on Terra, to be moved back to Osmosis

8

This proposal was about Terra-Cosmoshub. Channels are open. You can transfer your Atom to Cosmoshub again. Channels to Osmosis are open too.

9

I thank you very much for this answer. I tried but no way. I want to specify that I have ATOM on Terra station but on Classic chain. when I try to bridge them back to osmosis I see that the transfers are not allowed. could you help me to find a solution? thanks a lot in advance

10

Please DM me on Twitter. My handle is @frag_dude over there. I think I can help you with this.

It seems to me you need to bridge your ATOM to Cosmoshub first. Then from there you can bridge it to Osmosis.

11

thanks a lot, I will write you on Twitter ASAP. my handle is @nomedeocc

12

Hi again, seems that Twitter doesn’t allow me to DM you. please DM to me or DM in telegram, same @nomadeocc. thanks a lot.