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Cosmos (ATOM) Stakers to Have One More Income Stream: What Is Replicated Security?

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Tue, 21/02/2023 - 12:43
Cosmos (ATOM) Stakers to Have One More Income Stream: What Is Replicated Security?
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Cosmos (ATOM), a mainstream cross-chain ecosystem for dApps, shares the details of its upcoming security upgrade. Once activated, it unlocks a new rewards opportunity for ATOM stakers.

Cosmos (ATOM) introduces replicated security

According to the official announcement shared by the Cosmos Hub team, its brand-new replicated security mechanism will be activated with Lambda Upgrade v9. It is designed to advance the security of all networks leveraging Cosmos (ATOM) resources and to motivate ATOM stakers.

With this upgrade activated, ATOM stakers will get rewards from all new projects launching as Comsumer Chains. Every Consumer Chain, therefore, "leases" security from Cosmos Hub and its validators.

Cosmos Hub will share rewards with both validators and delegators. Together with ATOM staking rewards, network participants will get the native tokens of Comsumer Chains. If some Consumer Chains have no native governance token, rewards will be shared in transaction fees.

By default, 25% of transaction fees will be shared between Cosmos Hub and ATOM stakers. New Consumer Chains will be approved by a governance proposal supported by both stakeholders and 66.7% of the Cosmos Hub validator set.

As such, the role of ATOM stakeholders in ecosystem governance and operations increases:

Atom Governance will play a key role in defining Consumer Chain rewards in the onboarding phase (...) Today we had a first glimpse of Replicated Security, we saw that it is a shared security model that offers Atom delegators/validators additional revenue for staking ATOM.

From Cosmos Hub to Atom Economic Zone

Replicated security is the first feature that paves the way for an entirely new concept in Cosmos (ATOM) architecture, i.e., Atom Economic Zone.

Cosmos (ATOM) representatives describe it as "an ATOM-aligned ecosystem that will create new exciting dynamics yet to explore." As such, it might unveil new catalysts for Cosmos (ATOM) stakers.

The upgrade Lambda v9 is expected to be activated as soon as Q1, 2023.

Cosmos (ATOM) token is changing hands at $14.11, being up 7.6% in the last seven days.

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