Fellow Cosmonauts,
the first two governance proposals of the Cosmos mainnet entered the voting period. This post will give you a short introduction in both proposals and describe effects on the network. Furthermore, we describe our position and how we are going to vote.
Proposal 1 by B-Harvest: Adjustment of blocks per year parameter:
Subject matter:
The Cosmos genesis file contains a parameter which precalculates the number of produced blocks per year. This calculation defines the amount of rewards per block. The current figure (6,311,520 blocks/year) calculates with an average block time of 5 seconds/block.
365.25 days*24 hours*60 minutes*60 seconds / 5 seconds = 6,311,520
In turn, the “produced blocks per year” define the block provision:
block provision = (inflation rate / staking ratio) / blocks per year
staking ratio = bonded Atom amount / total Atom supply
Proposal adjustment:
In the mainnet, and all testnets before, the block time has been closer to an average of 6.5 seconds. B-harvest proposes to adjust the calculated block time in the genesis file from 5 seconds to 6.5 seconds. This would lead to the following calculation which aligns with the current block time of the mainnet:
365.25 days * 24 hours * 60 minutes * 60 seconds / 6.5 seconds = 4,855,105
Effects on the network:
Due to this difference in the calculation, we are currently receiving 23% fewer block rewards than defined in the white paper.
Our position:
We support the proposal from B-Harvest since it moves the network closer to the originally intended parameters.
It is great to see, that this first proposal is community driven. Our Korean friends from B-Harvest delivered a great example of how a proposal should be drafted!
More information:
https://forum.cosmos.network/t/governance-adjustment-of-blocks-per-year-to-come-aligned-with-actual-block-time/1682
Proposal 2: Simply-VC-Validator: enable ATOM transfer
Subject matter:
The goal of the second proposal is to enable the transfer of ATOM and increase the block size.
Important notification:
In collaboration with Tendermint and AiB (All in Bits) Simply VC intends to propose a slightly modified proposal. All parties strongly recommend voting “no” or “no with veto” on the current proposal 2!
Suggested adjustments of the current proposal:
Since the upgrade will start the chain again from block height 0, it is necessary to adjust the new chainID from “Cosmoshub-1” to “Cosmoshub-2”. Otherwise, validators would automatically double sign since the block 0 in the chain “Cosmoshub-1” already exists.
Tendermint and AiB suggest that the block size and gas parameters shouldn’t change drastically before state syncing is fully tested and implemented.
Furthermore, AiB strongly recommends a two-phase software upgrade process — the first proposal to agree on the scope of changes and the proposed software provider, and a second proposal to agree on the exact software Git commit hash and block height for the export-import upgrade. In order to not delay the token transfer, the first proposal will state that the second proposal need not wait the full 2 week voting period, but instead will be considered to have passed once +⅔ of the bonded Atoms have voted in favor.
More information:
https://medium.com/tendermint/cosmos-hub-on-chain-governance-proposal-resolution-recommendation-7aeb9576fa81
