Is Cosmos Network a Blockchain Cartel?

POS Bakerz
Jul 2 · 3 min read

As you may be aware, if you follow the Cosmos Network blockchain, a few days ago, All in Bits aka Tendermint decided to distribute approximately 20 million ATOM to 36 different validators out of 100.

You can see the full distribution here:

https://www.mintscan.io/account/cosmos176m2p8l3fps3dal7h8gf9jvrv98tu3rqfdht86

While some Tendermint team member received 1.3 million tokens, others validators received 900 K, 500 K or 330 K ATOM and some did not receive anything. As a private company, All in Bits is free to help whoever they want and owes nothing to the whole validator community.

Tendermint Team. In yellow people who also operate Validator (some might be missing)

But we wanted to reinsure all our delegators and explained our current view about this redistribution.

It’s also important to notice that some other big actors can also have an impact.

For example, Dokia, one of the biggest Validator and contributor in Cosmos, was one of the first to generously support other validators besides the ICF.

Our validator has not been included in any of these redistributions made by Interchain Foundation, Tendermint or Dokia Capital while it could have been a huge support for us.

Here is a list of the account supported from Interchain and/or Dokia Capital.

ICF support list: https://www.mintscan.io/account/cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

Dokia Capital:
https://www.mintscan.io/account/cosmos14lultfckehtszvzw4ehu0apvsr77afvyhgqhwh

So what’s the problem except that we are not in these lists?

The point is, that if you delegate millions to some validator and nothing to others, this could not be suitable in the long run.

There is some validator who will not even be operating without the help of this different and very generous ATOM distribution.

How can we become competitive as a Validator if some don’t take fees and in addition to this receive hundreds of thousands if not millions of ATOM from the team creating the protocol itself?

Our goal by writing this article is not to criticize Tendermint and their redistribution but we would like to understand the different criteria under their choices as it will be easier for us as a Validator to get to know what we should do to receive some support.

Even if we did not receive support yet from them, we are trying our best to give the services our delegator deserve and will continue to improve day after day.

By the way, we would like to give a big shoutout to Ethan Buchman and Arianne Flemming, who are involved in the ICF delegation process. They are also running Toronto-based validator (Cephalopod Equipment Coop) and to avoid any conflicts of interest, despite meeting the delegation criteria, Cephalopod Equipment Coop has been excluded in the previous round of delegation.

We agree with this decision and personally think there is a clear conflict of interest in being a Tendermint employee and validator.

Share your views in comments!

POS Bakerz

Written by

Staking-as-a-Service provider, offering public delegation services to Tezos, Cosmos, Irisnet and Terra Money Token Holders. https://posbakerz.com/

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