Cosmos Hub launched, yay!
After the launch of Cosmos Hub and the listing of its native token Atoms, we have seen a distribution of voting powers skewed in a way we have not expected. I have voiced my view through a longest tweet in my life on Twitter:
And we have received a lot of blessings and supports. Thank you!
Are you expecting me to say things like “We don’t intend to play a drama like this.” “We don’t need your mercy!” “We are not begging for your help.” Well… nope. I was and I am begging for help.
If you want something, you work, you perform, you borrow, you beg, you steal, you hack, you cry. You do everything to maximize your benefits according to your interpretations of the tokenomics. This is how blockchain works.
Different players take different actions according to the tokenomics. The design is that when everyone acts accordingly, the benefit to the network as a whole is optimized. We have got a delegation lower than what we have expected. Then we took actions. This is it.
About Forbole (Genesis Validator on Cosmos Hub!)
I am the co-founder of Forbole. But you probably know Kwun Yeung more who is another co-founder and much nicer than me. Forbole is a Genesis Validator on both Cosmos Hub and IRIS Hub with proven track records:
- Forbole has actively joined all the testnets since Gaia-4000.
- Forbole has created Big Dipper, the block explorer for Cosmos ecosystem loved by a lot of people including you. It was one of the prize-winners of HackAtom3.
- Forbole was named as one of the winners in the “Never Jailed” category in the Game of Stakes.
- Forbole (in the name of “kwunyeung” on GitHub) ranked #1 in the Incentivised Testnet of IRISnet. IRISnet is the strategic partner of Cosmos with its IRIS Hub being the first regional hub in the ecosystem once inter-chain communication is enabled.
My two μatoms to small validators
Dear validators, if you are the quality validator that the world should not miss out, you need to tell the world. Analyze your competitors. Find your strengths and weaknesses. Study your target customers. Ask for help. Beg for delegations.
Small Cosmonauts, this is your duty to tell atoms holders how good you are. This is your duty to gain more delegations such that Cosmos can become more decentralized.
If you want to throw in the towel due to the disappointing distribution of voting powers, I recommend you to fight for 3 more months.
My two μatoms to InterChain Foundation (“ICF”)
At round 8am 16 March (UTC), Cosmos has proven that Pareto rule (or more commonly known as the 20/80 rule) is true, of which 20% of validators were having 80% of voting powers:
There is a natural tendency towards centralization in a free market. This is like gravity. Big players who want to achieve decentralization need to use extra force proactively to hack 20/80 rule. How about 30/70 or even 38/62?
This is counterintuitive to request the leading validators and whales to give up their voting powers. They are just acting according to the tokenomics: maximizing their own benefits. ICF, as the non-profit making organization seems to be the only entity that has incentive to take counterintuitive actions.
ICF needs to fight 20/80 aggressively
I suggest ICF to take an aggressive approach to fight 20/80 rule. This is like using combustion to overcome gravity. ICF should delegate ALL its atoms to the qualified validators who are outside of the leading 20% validators until we see the 20/80 rule has been twisted to 30/70 and if possible, 38/62.
Why 38/62? Fibonacci ratio. Why 38/62? It’s magic. And yes, “ALL” its atoms, for that only means 10% of total initial supply which I guess is shrinking deal to inflation.
Don’t feel shame to interfere. We are fighting gravity.
Threat to ICF’s ROI? Redefine “R”.
Will this aggressive approach harm the ROI of ICF’s atoms? First of all, as a non-profit, what is this “R”? This R should mean the enormous hidden power of true decentralization which we cannot tell just base on the current reward in terms of atoms.
Hey, there are 53 GoS Winners
Secondly, will this really harm the traditional ROI? Let’s recall the winners list in Game of Stakes. There were 27 winners in Never Jailed category. Let’s see how Zaki Manian described this group of winners:
Based on the scoring criteria these players stayed in the validator set for the entire game. They demonstrated enormous skill at adapting to the adversarial network conditions and uncertainty about how to correctly configure nodes.
(disclose: Forbole is in this category.)
There were another 12 winners in Uptime Leaders. And another 10 or 12 winners who also got the rewards. I assume all of them have shown various level of skills and contributions, and most of them all qualified to participate the validation and governance in a meaningful way.
If we only need the top 5 validators who have shown extraordinary skills in network security or skin in the game, then why do we need 100 validators? Why don’t we just hire these 2–3 winners to operate 100 nodes and run the entire network? Network security is of utmost importance but this is not the single one factor we need to consider.
Validators make contributions in various way such as building the community and developing useful tools for users. If they can have a fairer share of rewards, they can make more and better contributions.
Think long term. Cosmos has trained a group of contributors with skills, experiences and passions. Don’t let them go easily.
Repeat. Various blockchain ecosystems are competing fiercely for the time of great validators. This is a long game. Don’t let them go easily. “B” grade validators will become “A” grade validators. “A” grade will become “S” grade. If you don’t give them chances (and the resources), we will not have enough validators to support the growing ecosystem.
Decentralization doesn’t come for free
If this approach really causes some damage to the ROI of ICF’s stake, treat this as the price we have to pay. Decentralization doesn’t come for free. And it doesn’t come easily. We need to spend energy to overcome gravity.
Power tends to corrupt, and absolute power corrupts absolutely. We need to act and voice decentralization proactively and aggressively. This needs to be done both in form and in substance.
Decentralization shall prevail.
Forbole will also act aggressively to gain more delegation as we are confident that we are one of the best validators in terms of skills, experience, contributions and location.
We will lower our commission rate 1% a day and towards 0%. The price cut shall be completed on 27 March (UTC). We will stay at 0% for at least one month. At the same time, we will increase our effort in the staking business of atoms and iris, and in the community building. We will elaborate more on this later.
Please delegate to Forbole. Our validator operator address is: