A heated debate in the crypto community has erupted after a proposal to merge the Osmosis ecosystem and the Cosmos Hub was put forward on the eponymous forum. What does this proposal contain?
Merging Osmosis and Cosmos Hub: Proposal sparks debate in crypto community
A proposal to merge the Osmosis ecosystem with the Cosmos Hub has emerged on the Cosmos ecosystem governance forum. This ambitious proposal has sparked heated debate in the crypto community, particularly within Osmosis..
Thus, many messages of discontent of this type were issued on the social network X:
Guys, $osmo has lost 3% since discussion of the merge with $atom began.@sunnya97 you are not being aggressive enough. I do not want to trade my $osmo for locked $atom under any circumstances.
The hub has been a place of pathetic mediocrity and you won't be able to fix it,… pic.twitter.com/TfmIyWZd6C
— Jacob Gadikian 🦄x⚗️ (@gadikian) September 1, 2024
In this example, among others, it is notably notified that Sunny Aggarwal, the founder of Osmosis, would not be ” not aggressive enough » towards this idea of merging its ecosystem with the Cosmos Hub.
💡To learn more – Cosmos (ATOM), the advent of the Internet of blockchains
Indeed, although he may express reservations about this proposal by asking for “ tokenomics that satisfy both parties “, he specifies that “ the way to do it is to offer OSMO holders a merger with ATOM, but with a slight premium depending on how long they lock up their tokens » before adding « So if they want instant liquidity, it's at a discount. “.
In other words, if this fusion between Cosmos and Osmosis were to occur, OSMO token holders could be rewarded if they hold their tokens for a certain period of timeHowever, they would be penalized if they wanted to obtain instant liquidity on tokens that they already hold.
Additionally, many members of the Osmosis community have expressed concerns about future governance if the proposal were to be accepted. Indeed, governance proposals on Osmosis number 3 to 5 per week, whereas a proposal on the Cosmos Hub is debated for 14 days and then voted on during a new 14-day period.
They thus denounce a risk of governance that is too slow, which would be harmful to the project.
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What does this proposal contain?
“The goal of this potential merger would be to leverage synergies and create a more robust and scalable infrastructure that more effectively serves both ecosystems, their respective communities, and the interchain as a whole.”
The terms of this proposal have not been finalized, and some points remain to be explored and debated by the community; nevertheless, She highlights several advantages to such a solution:
- Improved liquidity for Osmosis;
- Greater scalability for the Cosmos Hub with Osmosis Automated Marketplace (AMM) integration;
- Stronger growth by pooling developers;
- Bringing together the two user communities to draw strength from them;
- Improved user experience;
- Media interest in the subject.
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However, many questions remain unanswered and the Osmosis community, while open to discussion, does not intend to relinquish its governance to ATOM holders without a number of guarantees.
It will be particularly interesting to follow the debates on this subject in the coming days/weeks and their outcome.
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Source: Cosmos Hub Forum
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide a weekly fundamental analysis.
Theo Zananiri
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