Osmosis Governance Corner — July 27, 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:
564 — Add PICA/OSMO to External Incentive Matching Program >> Passed
Proposals passed or rejected since Previous Governance Corner:
None
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 567 — Disposition of ProtoRev Collected Revenues
In proposal #421 the Osmosis community voted to accrue ProtoRev revenue on a separate Osmosis-address and to determine the use of these funds on a later moment. This was followed by prop #516 and #519 which were both rejected.
This proposal aims to achieve 3 topics;
- any non-OSMO (ATOM, USDC, etc.) accrued by ProtoRev will be sent to the Community Pool to diversify the set of assets in the pool.
- OSMO accrued by ProtoRev will be burned.
- Parameters regarding the usage of ProtoRev should be adjustable through governance.
By sending the non-OSMO assets to the community pool it becomes more resilient for price movements of purely OSMO. Regarding OSMO it has been considered to send it to the community pool as well, but was rejected due to the fact that the community pool already holds a vast amount of OSMO. It was also considered to distribute the revenue to stakers, but was rejected as well for being a too small amount to make a difference in terms of APR (expected to be around 0.16%). Burning OSMO is intended to result in a net deflationairy asset on the long run (taking thirdenings into account).
Arguments in favor of this proposal
- Passing this proposal gives a direction what to be done with the ProtoRev revenue and provides a basis to build on.
- The proposed solution is a very simple and understandeable format what needs to be done with ProtoRev revenue.
Arguments against this proposal
- The proposal asks for 2 outcomes in 1 proposal, which is often advised to avoid.
- Burning OSMO does not do good for the protocol on the long run.
Proposal 568 — Create Supercharged Pools for CRO, MATIC and BNB
NOTE: This proposal has to be voted down. There are some issues with the creation of Supercharged pools with EVM assets that were known but not fully communicated before this proposal went to chain. The current DAI/OSMO pool has no issues as DAI is the “Quote Asset”. A new proposal has been drafted that would add the lower exponent asset Supercharged pools during a Software upgrade and lead to a smoother incentive migration process: https://forum.osmosis.zone/t/signalling-proposal-for-supercharged-pools-creation/138
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 — [Cross Post] Selecting Stride’s Osmosis Host Chain Valset
Stride is securing large amount of assets through the liquid staking protocol. Once converted from a native asset into a liquid staking asset, the original native asset is delegated on the native chain (for example $ATOM on the Cosmos Hub, $OSMO on the Osmosis chain). For the Cosmos Hub a diverse set of validators has been selected and voted on in late 2022. For all the other chains this has not happened yet; and the native assets are staked to the top30 validators (excluding centralized exchanges). This leads to the centralization of voting power, which is not something which is desired. In this thread on Discourse the process for renewing the set on the Cosmos Hub and copying the process to the Osmosis chain is described. Furthermore links are included in case you are a validator and want to apply on one of the 2 chains OR if you want to be part of the delegation council who will create the new set of validators.
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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