Stride’s Evolution: A New Hub Proposal on the Horizon
In a recent forum post, an intriguing proposal has been put forth: the conversion of the entire $STRD supply to $ATOM, thereby granting the Cosmos Hub full control over the Stride protocol and its associated rewards. Please note the proposal is still in an idea stage.
Background and Rationale
Since its inception a year ago, Stride’s primary objective has been to amplify Cosmos liquidity. The protocol has successfully unlocked over $35M of liquidity for Cosmos DeFi, emphasizing the significance of liquid staking in enhancing on-chain economic activity. Stride’s integration with interchain security in June 2023 further fortified its position as the most secure and decentralized liquid staking protocol within Cosmos.
The Proposal’s Implications
By converting the entire $STRD supply to $ATOM, $ATOM would emerge as the exclusive governance token for Stride. This transition would entail the Cosmos Hub provisioning a specific amount of $ATOM for the conversion, post which ATOM would accumulate all Stride rewards. Consequently, the Stride blockchain would operate as a satellite chain of the Cosmos Hub, with Stride contributors continuing their work on the Stride protocol and also assisting the Cosmos Hub.
Benefits for Both Ecosystems
For Stride, this transition promises enhanced decentralization, potentially leading to heightened confidence and a surge in liquid staking. The $ATOM token, renowned for its decentralization, would serve as a more trusted governance token for the Stride protocol.
On the other hand, the Cosmos Hub stands to gain substantially. Stride Labs would pivot to a dedicated Cosmos Hub development unit, primarily focusing on the Stride satellite chain. Additionally, the Cosmos Hub would tap into a new reward stream, with the Stride protocol currently generating an annualized $700,000, showcasing immense growth potential.
Community’s Role in Shaping the Future
It’s crucial to note that this proposal is still in its nascent stages, with concrete details yet to be ironed out. The community’s voice will play a pivotal role in determining the proposal’s fate. Engaging in transparent discussions now ensures that every stakeholder can partake in the decision-making process. Whether you’re in favor of or against this idea, your insights are invaluable. Join the conversation and help shape the future trajectory of Stride and the Cosmos Hub.
See the full Convert entire STRD supply to ATOM proposal here and join the conversation!
