First and foremost, we commend the team for taking meaningful steps toward deepening integration with the Cosmos Hub. At Govmos, we’ve been closely following Noble’s expansion and believe the time has come for the project to realign with the broader Cosmos vision. With shared security models evolving into product-based alignments, it is entirely logical to see Noble offering USDN through the Hub. The offer to share yield presents a pragmatic foundation for such an agreement.
On Yield Distribution:
From our standpoint, defining a destination for the yield at this early stage is premature. Proposals to buy back, allocate, or redistribute yield are certainly worth exploring—but they lack sufficient context and data for effective decision-making today. We strongly recommend postponing any final decision on yield distribution until enough empirical data is available to guide the process quantitatively.
On Political Implications:
That said, the proposal also carries some political assumptions that deserve to be addressed. As @JohnMontagu rightly noted:
“Adopting a canonical yield-bearing stablecoin for a chain and redirecting the yield to the right actors is a powerful mechanism (see Initia adopting Ethena’s sUSDe), but it makes the Hub opinionated.”
To avoid ambiguity on this critical point, we urge that the proposal explicitly clarify that USDN will hold no privileged status over any other stablecoin. More broadly, we believe the Hub must remain neutral and not align itself with any single currency—especially not a fiat-backed one.
Capital vs. Currency:
ATOM stands as a prime collateral asset, offering independence from fiat systems and centralized control. At Govmos, we maintain that ATOM represents a superior on-chain form of capital—yield-bearing, censorship-resistant, and free from political influence.
We’ve long advocated for a clear separation between money and capital as a foundational principle of a resilient financial system. In this light, we support the role of fiat-backed stablecoins as transactional currencies, but we do not endorse any framework where such assets are elevated to capital instruments or intermediaries in the ecosystem.
Let’s not lose sight of the fact that ATOM is both sovereign and productive, while fiat-backed stablecoins are, by design, politically tethered. We urge the community to protect this frontier and build a system where decentralization isn’t just a narrative—but a structural reality.
Thank you for reading,
Govmos
