When Informal Systems stepped down from Hub management @jtremback mentioned his frustration with his failed effort to get restaking implemented on the Hub.
Avail (a new ecosystem) recently announced restaking. x.com
I come from traditional finance, so I’m ignorant around the tech involved with restaking. However, I think it’s important we get the conversation going.
If the Hub is to remain relevant, it cannot fall behind and with Informal Systems stepping away the community would benefit from open discourse and a vision.
What are your thoughts about shared security through restaking?
I understand your point about discourse, as it can lead to many conflicts. However, if we centralize, we lose the benefits of decentralized systems, right? My suggestion is to develop an AI capable of viewing and recording content from both sides, analyzing the pros and cons, and generating a variety of solutions based on percentages. This could help manage discourse and provide clear direction.
Regarding shared security through restaking, I’ll give it a try. Suppose I have 5000 ATOM tokens and I’m staking 4000 of them. If the price is $1000 per token (just an example), my earnings would be 900 annually. That’s $5,000,000 in total. Personally, I wouldn’t need to withdraw the entire amount. If my earnings are 900 from staking, that would be $900,000 annually at a price of $1000 per token.
Considering price fluctuations, let’s be more conservative. If the price drops to $375 per token, the total value would be $1,875,000. With staking rewards of 900 at this price, the annual income would be $337,500. If someone can’t live off that, it might be due to greed or excessive spending.
As for the remaining funds that aren’t withdrawn, I would allow them to be shared with companies developing new ideas and innovations. But of course with incentives, not much but able to expand
I hope in some way I was able to answer this question.
However, this only my opinion.
Sorry but I don’t understand
Restaking is a way to propose shared security with tokens that were not designed for shared security for example you can use staked ETH with Eigen layer via stEth but Atom is natively designed for it !?
@BlocksUnited Thank you for bringing this into discussion.
Although unsure how this would work out exactly, intrigued by the idea if it is restaking on the Cosmos Hub. Perhaps a portion of staking rewards, from Top 20 validators, could be funnelled into this mechanism to support this?
Ok thanks to this conversation LSM removal and replacement: A possible plan now I understand
ICS is about reusing staked atom to validate blocks on consumer chain
Restaking is reusing staked atom for anything else
To me it’s a very interresting feature !