Osmosis Governance Corner — July 07, 2023
This is the Osmosis Governance Corner, featuring the Osmosis governance proposals that are on-chain for voting this week. Governance proposals are topics where the opinion from the community is requested. Not sure what a governance proposal means or how to vote on it? Read below for a brief summary, and arguments for and against passage of the proposal.
By voting, you have influence on the outcome of the proposal and the direction Osmosis takes. It is important that Osmosis users vote to ensure the voice of the community is heard.
Osmosis allows everyone to voice their thoughts. You can vote on Osmosis governance proposals using various platforms. Scroll to the bottom to find links to them. Participate in ongoing governance discussions at gov.osmosis.zone. Join the discussion and take control of your vote!
Last Weeks Proposals
In this section you will find information about:
- Proposals which have been described in the previous governance corner update. Only the outcome of the proposal will be listed.
- Proposals which have not been discussed in the update that may have been put on chain and passed between governance corner articles. For the second category a small summary of the proposal will be given, along with the outcome of the voting.
Discussed in Previous Governance Corner:
544 — Community Enabled Analytics Program Renewal (July 2023 — June 2024) >> Rejected
545 — Enable Superfluid Staking on OSMO/FET >> Passed
546 — Enable Superfluid Staking on OSMO/KAVA >> Passed
548 — Allow Levana Contracts upload >> Passed
Proposals passed or rejected since Previous Governance Corner:
549 — Protocol Taker Fee — Distribution of Fees paid in OSMO >> Passed
Proposal #549 entered the voting period 02–07–2023 and passed on 07–07–2023.
In proposal #530 the protocol taker fee was introduced and how the non-OSMO fees would be divided (67% to stakers, 33% to the community pool in whitelisted assets), but it was not specified yet what would be done with the OSMO-revenue. This proposal sought approval for distribution to stakers and got the approval upon passing. The implementation waits for a future dev upgrade.
Proposals on chain
In this part of our governance corner update you can find a short description of the proposals which can be currently be found on chain. Read more to find out what the proposal is about and some arguments for and against passage of the proposal. This should help you form an opinion on the proposal, and don’t forget to vote!
Proposal 551 — Osmosis Max Supply Restoration through Excess OSMO Burn
The thirdening was planned to occur on 20–07–2023, but due to an error in proposal #534 and #535 it was delayed by one day. The thirdening was correctly executed after passing of proposal #539 but this delay resulted in 547.945k OSMO to be created in excess. This proposal requests approval to burn this surplus of created OSMO by sending it to the null address osmo1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqmcn030, effectively removing it from the supply. The OSMO will be taken from the community pool.
Arguments in favor of this proposal
- The OSMO intended to be burned was not meant to exist in the first place.
Arguments against this proposal
- Sending it to the null address is not a true burn, resulting in possibly wrongly reported values regarding circulating, total and max supply.
Proposal 552 — Resubmission: Lengthen Thirdening and restore Thirdening impact
This proposal is a revisit of prop #535 which contained settings which were overwritten by prop #539. Passing this proposal brings back the thirdening to a third reduction (not the 2/3 as voted on in prop #434) and increase the thirdening length to 2 years (and not the yearly which was reinstated temporarily in prop #539).
Arguments in favor of this proposal
- The effects of this proposal have already been approved in the past.
Arguments against this proposal
- None mentioned on Commonwealth or validator.keplr.app.
Proposal 553 — Launching ERIS Protocol on Osmosis
Through this proposal ERIS Protocol seeks approval to upload their contracts to Osmosis as well as whitelisting the deployer address for future uploads of contracts managed by a multi-sig. ERIS wants to upload their tokenfactory based amplifier hub (1), their amp governance (2: voting escrow, amp gauge) and in the future amp z for DeFi automations and Arb Vault to stabilize liquid staking tokens as well as helper contracts for fee conversion. All contracts to be launched would be open-source or source-available and audited by external parties. ERIS is a liquid staking provider in Cosmos with main base on Terra.
Arguments in favor of this proposal
- Adding the ERIS contracts matches the desire of Osmosis to be the DeFi Hub.
Arguments against this proposal
- None mentioned on Commonwealth or validator.keplr.app.
Proposal 554 — Phase out Incentives on Low Revenue Pools Part 2
In proposal #376 incentives were phased out on pools generating a low amount of revenues for Osmosis. This is a follow-up where another 9 pools are selected generating less than $10 daily in revenues. The proposal also seeks approval for removing guaranteed incentives on 3 pools which are not used much (check the proposal for which pools are affected). If this proposal is passed the incentives will be removed in 2 incentive updates to allow LPers to remove their liquidity.
Arguments in favor of this proposal
- These pools do not generate revenue for Osmosis and can therefore also be removed from receiving incentives.
- The proposal would also remove minimums on a couple of pools, causing rescaling of the incentives to be based on the fees to be applicable for these pools completely as well.
Arguments against this proposal
- This is again a patch, whereas this should be solved by the analysis from Hathor Nodes funded via the OGP. But the outcome of this analysis is still pending.
- Some coins included show potential, where removing incentives might harm the project on the long run.
Proposal 555 — Allow Skip API Contract upload
This proposal grants the address belonging to Skip the ability to upload CosmWasm contracts to Osmosis without requiring further governance approval for each upload. Additionally, Skip intends to leverage Osmosis swap hooks to build a service that simplifies cross-chain transfers, swaps, and fee management. Skip will provide this functionality via our free API, which enables applications anywhere in Cosmos to seamlessly draw on Osmosis liquidity.
Arguments in favor of this proposal
- Allowing Skip to upload the contracts will add new alternatives for services using Osmosis liquidity.
Arguments against this proposal
- The services intended to deliver in the description of the proposal are not unique and already delivered by either TFM or Osmosis Outposts without smart contracts.
Interesting proposals on Commonwealth
This part of the governance corner update will always contain a maximum of 2 Commonwealth threads which are highly interesting to visit. The threads highlighted here will have a major impact on Osmosis on the long term, so participating in these conversations will allow you to contribute to the future of the project.
Thread — Require Whitelisted addresses to make code Visible prior to upload
This thread is triggered by proposal #548. Currently a couple of proposals passed governance allowing teams to upload new and updates to smart contracts without seeking governance approval for each upload. The content of these contracts is not reviewed by the community of validators and creates the risk that malicious code is uploaded. This thread serves as a place to discuss how this can be mitigated.
How to vote?
You can vote using various platforms for Osmosis. Simply log in with your wallet (you might need to import your wallet first) and choose Yes / No / NoWithVeto / Abstain on the vote following your own beliefs using the information provided in these blogs. Your own vote always overwrites the vote done by the validator you delegated to, but only for the voting power your address represents.
The following platforms can be used:
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